By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 3 (MarketsFarm) – The ICE Futures canola market was mixed at Thursday’s close, after a choppy day that saw the most active front months trade to both sides of unchanged.
Speculative positioning was a feature, with the old/new crop spreads widening on the day.
Losses in Chicago Board of Trade soyoil futures accounted for some spillover selling in canola, while soymeal was higher and soybeans held near unchanged.
Tight old crop canola supplies remained supportive, but demand was being rationed at current levels and prices may need to move lower in order to encourage more buying interest.
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About 17,934 canola contracts traded on Thursday, which compares with Wednesday when 19,487 contracts changed hands. Spreading accounted for 11,938 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade traded to both sides of unchanged on Thursday, settling narrowly mixed. Soybeans were said to be due for some consolidation amid ideas the market was looking overbought after hitting contract highs earlier in the week.
Weekly U.S. soybean sales of 1.1 million tonnes of old crop and 880,000 tonnes for delivery in the new crop year came in above trade guesses. Soymeal sales were also strong, at 605,500 tonnes, but soyoil sales of only 4,100 tonnes were at the low end of expectations.
Ongoing uncertainty over South American crop production remained supportive. However, recent rains in Argentina have alleviated those concerns somewhat, while farmers in Brazil are making some harvest progress.
CORN was weaker, with chart-based profit-taking a feature.
Weekly U.S. corn export sales of just over a million tonnes were at the higher end of expectations. However, the U.S. Department of Agriculture also announced cancellations of 380,000 tonnes of previously reported sales to China.
Continued losses in wheat also put some spillover pressure on values.
WHEAT saw some follow-through selling after Wednesday’s declines, as much of the dry Southern Plains saw some much needed moisture.
Weekly U.S. wheat export sales came in at their lowest level in over a month, with only 57,000 tonnes sold, according to a report from the U.S. Department of Agriculture.
The ongoing tensions between Russia and Ukraine remained a feature in the background of the wheat market.
