By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 25 (MarketsFarm) – The ICE Futures canola market was sharply lower on Friday, taking back all of the gains of the past week as investors moved to the sidelines ahead of the weekend.
The grain and oilseed markets remained highly volatile, with all eyes focused on the developing situation in Ukraine.
Losses in outside markets, including crude oil and Chicago Board of Trade soyoil, contributed to the selling pressure in canola. Meanwhile, the Canadian dollar was stronger, which was another bearish influence.
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About 32,727 canola contracts traded on Friday, which compares with Thursday when 41,376 contracts changed hands. Spreading accounted for 13,104 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade posted double-digit losses in volatile trade on Friday, as investors continued to try and get a better handle on the situation in Ukraine and what it means for the grains and oilseeds.
Speculative positioning ahead of the week- and month-end was a feature, with some stops likely hit on the way down.
However, solid export demand provided some underlying support.
The United States Department of Agriculture reported weekly U.S. soybean export sales of 1.2 million tonnes of old crop business and an additional 866,000 tonnes for delivery next year. Flash sales this morning of 334,000 tonnes to China and an additional 285,000 to unknown destinations were also reported.
Weather conditions in South America remained a background feature of the trade.
CORN was also caught up in the broad selloff, taking back all of the gains posted over the past week.
However, just as in soybeans, solid export demand provided some support. The USDA reported just over a million tonnes of old crop business and an additional 117,000 tonnes of new crop sales.
WHEAT was down sharply, as traders reacted to the ongoing situation in Ukraine.
Weekly old crop U.S. wheat export sales came in at just over half a million tonnes, with new crop business of 169,000 tonnes.
Sanctions against Russia could limit grain movement out of the region, opening the door for more U.S. business.
