By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 27 (MarketsFarm) – The ICE Futures canola market was weaker on Thursday, taking back Wednesday’s gains as the futures continued to hold within a sideways trading range.
Losses in Chicago soyoil contributed to the selling pressure in canola. However, Malaysian palm oil held reasonably steady and European rapeseed futures were higher on the day.
Canola crush margins tightened slightly on Wednesday but remain wide overall which should encourage user demand on any dips in the market.
The largest losses were in the nearby November contract, with thin volumes exaggerating moves in the front month as traders clean up positions ahead of the contract’s expiry.
Read Also
Canadian Financial Close: Loonie, crude oil give up ground
Glacier FarmMedia – The Canadian dollar retreated further on Thursday, one day after the Bank of Canada and the United…
About 22,036 canola contracts traded on Thursday, which compares with Wednesday when 28,676 contracts changed hands. Spreading accounted for 14,140 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade settled narrowly mixed on Thursday, lacking any clear direction as spillover support from gains in soymeal were countered by losses in soyoil.
Weekly United States soybean export sales came in at just over a million tonnes, roughly half of what sold the previous week, but in line with the year ago level.
Conditions remain relatively favourable for good harvest progress across the Midwest over the next week, with the influx of farmer deliveries keeping the soy market under pressure.
South American weather concerns were supportive on the other side, with parts of Brazil reportedly too wet and parts of Argentina too dry.
CORN drifted lower on the day in thin and choppy trade, as the advancing harvest kept values under pressure.
Weekly U.S. corn export sales of about 264,000 tonnes were down from the previous week, but in line with the year-ago level.
WHEAT was lower at the close, retreating from earlier gains after the buying interest subsided.
Weekly U.S. wheat export sales of 533,000 tonnes were the highest of the marketing year to date, with South Korea the top buyer.
Uncertainty over Ukrainian grain exports and whether the Black Sea corridor will remain open remained a feature in the back of the wheat market as the deal is set to expire on November 19. There were estimated to be at least 150 ships waiting to pass through Turkey’s Bosphorus Strait into the Black Sea.
