By Dave Sims, Commodity News Service Canada
Winnipeg, March 9 (CNS Canada) – The ICE Futures Canada canola complex plunged on Friday as steep losses in U.S. soybeans and strength in the Canadian currency pointed the way lower.
Canola was pressured by losses in U.S. soyoil and farmer selling.
Yesterday’s bearish USDA report also dragged on the market as the agency predicted U.S. ending stocks of soybeans would rise to their second highest amount ever.
Falling crush margins and spec selling undermined the market.
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However, canola is still relatively cheap compared to other oilseeds and global demand for oilseeds remains firm.
Around 15,057 canola contracts were traded on Friday, which compares with Thursday when around 15,303 contracts changed hands. Spreading accounted for 7,194 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market suffered steep losses to end the week as the effects of yesterday’s USDA report continued to reverberate throughout the market.
Most analysts don’t believe that the recent rise in soybean demand will keep up with the rising carryout numbers in the United States. The USDA pegged soybean stocks at 555 million bushels, which is the second highest amount on record and 80 per cent more than last year.
There are ideas that some U.S. corn acres could be switched to soybeans.
Corn futures softened on Friday in corrective trading.
U.S. farmer selling of both old and new crop is picking up slightly, which was bearish.
Yesterday’s report lowered U.S. ending stocks, which lent some support to the market.
Chicago wheat futures dropped on Friday in the wake of yesterday’s USDA report. The agency raised the U.S. ending stocks number, which it said was partially a result of weak exports.
The agency raised the U.S. ending stocks number by a light amount, brought on by weak exports.
Russian wheat exports were estimated to be 37.5 million tonnes this year. That is much higher than last year’s figure which was just 27.8 million.
