By Dave Sims, Commodity News Service Canada
Winnipeg, March 22 (CNS Canada) – The ICE Futures Canada canola complex finished lower on Thursday, due to weakness in U.S. soyoil.
The May contract ran into some technical resistance, which drove it lower.
Large world supplies of oilseeds weighed on prices.
The Canadian dollar has risen significantly since Monday, which undermined the market.
However, the Malaysian government’s decision to impose an export tax on its tropical palm oil, supported canola.
Many farmers on the Prairies are hanging onto supplies right now in search of better prices, which was bullish.
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Around 9,047 canola contracts were traded on Thursday, which compares with Wednesday when around 13,012 contracts changed hands. Spreading accounted for 3,686 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market chopped around in technical trade on Thursday before ending with a slight gain.
The latest estimate for soybean plantings in the U.S. is around 91 million acres, slightly higher than last year, according to Rabobank.
Brazil is expected to export nearly 75 million tonnes of soybeans this year, according to Rabobank. That is much higher than the previous estimate of 71 million tonnes.
Corn futures recorded small gains on Thursday, taking support from weakness in the U.S. dollar.
Technical resistance for the May contract has been pegged at US$3.78 per bushel.
The U.S. is expected to export more corn to Mexico due to rising demand for livestock feed.
Chicago wheat futures finished slightly higher due to short-covering.
There are ideas the market is undersold.
The size of the U.S. wheat crop has been pegged at 47 million acres, according to Rabobank.
