By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm — The ICE Futures canola market fell for the third-straight session Thursday, hitting its weakest levels in two months as values broke below chart support.
The move below C$600 per tonne in the January contract was bearish from a technical standpoint, encouraging additional speculative selling. Losses in Chicago soyoil contributed to the declines, with European rapeseed and Malaysian palm oil also lower.
Farmers were generally on the sidelines waiting for a turn higher in the market, while end user demand has also backed away as they are thought to be well covered for the time being, according to participants.
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Glacier FarmMedia | MarketsFarm — Canola futures on the Intercontinental Exchange rebounded from recent losses in the middle of Wednesday…
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There were an estimated 68,773 contracts traded on Thursday, which compares with Wednesday when 55,711 contracts traded. Spreading accounted for 37,510 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Thursday, settling just above contract lows as bearish chart signals and favourable South American production prospects weighed on values. Uncertainty over trade policies proposed by U.S. President-elect Donald Trump also continued to overhang the market.
Weekly U.S. soybean export sales topped expectations at 1.86 million tonnes, with the U.S. Department of Agriculture reporting additional flash sales of 198,000 tonnes of soybeans to China, 135,000 tonnes to unknown destinations and 133,000 tonnes of soymeal to the Philippines.
However, aggressive offers out of Brazil and relatively favourable crop conditions in the South American country were bearish, keeping the bias pointed lower.
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CORN saw spillover selling pressure from the losses in soybeans, with wheat also down on the day.
Weekly US corn export sales came in at the low end of trade estimates at just under 1.5 million tonnes.
While WHEAT continued to find support from the escalating conflict between Russia and Ukraine, as both sides increased their missile attacks, the futures ran into resistance and turned lower after trending up for the past week.
Weekly U.S. wheat export sales came in at about 550,000 tonnes.
