By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 14 (MarketsFarm) – The ICE Futures canola market was weaker at Friday’s close, after trading to both sides of unchanged in choppy activity.
Losses in the Chicago soy complex accounted for some spillover selling pressure in the canola market, with solid farmer deliveries into the commercial pipeline another bearish influence.
Just over 600,000 tonnes of canola were delivered into the commercial pipeline during the week ended Oct. 9, according to the latest Canadian Grain Commission report. Visible supplies increased to 1.43 million tonnes, from 1.24 million the previous week.
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However, canola remains cheap compared to other oilseeds, with wide crush margins keeping end users on the buy side. Weakness in the Canadian dollar was also supportive.
About 31,024 canola contracts traded on Friday, which compares with Thursday when 35,876 contracts changed hands. Spreading accounted for 24,872 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade moved lower on Friday, backing away from earlier gains as traders booked profits ahead of the weekend.
Seasonal harvest pressure contributed to the declines as conditions remain relatively favourable across much of the Midwest.
However, the losses came despite solid export demand.
Weekly United States soybean export sales of 724,400 tonnes were in line with expectations, with large additional flash sales of 392,000 tonnes to China and 198,000 tonnes to other unknown destinations also reported.
CORN settled lower on Friday, pressured by soft export data and the advancing harvest.
Weekly U.S. corn export sales of only 200,000 tonnes of old crop and an additional 60,500 tonnes of new crop were below the low end of trade estimates.
From a chart standpoint, the nearby December contract traded within half a cent of the psychological US$7 per bushel mark in early trade but ran into resistance at that point and turned lower.
WHEAT was down double digits across the board, correcting from Thursday’s gains as prices continued to chop around in a sideways range.
Weekly US wheat export sales of 211,800 tonnes were at the lower end of expectations.
The ongoing conflict in Ukraine remained at the forefront of the wheat market – with the escalation of Russian attacks over the past week raising concerns over grain movement from the region
Declining production estimates out of Argentina were somewhat supportive – as dryness there cuts into the yield prospects.
