By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Nov. 17 (MarketsFarm) – The ICE Futures canola market was weaker on Thursday, closing at its lowest levels in over a month as losses in outside markets weighed on values.
News that the agreement allowing Ukrainian grain to ship through the Black Sea would be extended accounted for much of the selling pressure in the grains and oilseeds – including canola. Chicago soyoil, European rapeseed and Malaysian palm oil futures were all down on the day.
However, crush margins remain historically wide, keeping end users showing solid demand underneath the market. A lack of significant farmer selling for the time being was also supportive.
Read Also
Canadian Financial Close: Crude oil drops, new high for TSX
Glacier FarmMedia | MarketsFarm – The Canadian dollar eased off on Monday, but remained above the 73 United States cent mark….
About 31,797 canola contracts traded on Thursday, which compares with Wednesday when 39,520 contracts changed hands. Spreading accounted for 21,188 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Thursday, seeing a continuation of Wednesday’s declines.
Russia has reportedly agreed to extend the Black Sea grain corridor deal for another 120 days, weighing heavily on many markets. In addition to the resulting weakness in world energy and commodity markets, the United States dollar also showed some strength which added to the bearish tone in the grains and oilseeds.
However, the losses in beans came despite solid demand. Weekly U.S. soybean export sales came in at just over three million tonnes, marking the largest weekly sales in just over two years and coming in well above expectations. China was the main buyer with Mexico also in the market.
Chart-based selling was bearish, with some stops hit on the way down. However, easing harvest pressure was somewhat supportive.
CORN was also pressured by the Black Sea news, but held near unchanged overall.
The U.S. Department of Agriculture reported weekly U.S. corn export sales of 1.17 million tonnes, which was at the high end of pre-report estimates.
Ongoing dryness concerns in Argentina and declining production estimates there were supportive.
WHEAT was lower across the board, seeing a continuation of Wednesday’s declines.
Ukraine is a major wheat exporter, making the Black Sea news especially bearish for that market.
Weekly U.S. wheat export sales of only 290,000 tonnes were below average trade estimates and he lowest level in four weeks.
