By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Jan. 5 (MarketsFarm) – The ICE Futures canola market was weaker on Thursday, taking some direction from Chicago soybeans and soyoil.
Malaysian palm oil and European rapeseed futures were also down on the day, accounting for some spillover selling pressure in the Canadian oilseed.
Chart-based positioning was a feature, with no real clear market-moving news to significantly push canola values one way or the other, according to a trader.
The Canadian dollar was softer on the day, providing some underlying support for canola. Solid demand from both exporters and domestic crushers also helped temper the declines.
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About 22,499 canola contracts traded on Thursday, which compares with Wednesday when 30,287 contracts changed hands. Spreading accounted for 13,528 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Thursday. Bearish technical signals contributed to the declines in soybeans, with a broad ‘risk off’ sentiment in global financial markets also weighing on values as the soybean market retreated from overnight gains.
Some private forecasters were lowering their estimates on the size of Brazil’s soybean crop, although production there is still generally expected to be record large overall.
Meanwhile, forecasts calling for some much-needed rain in Argentina were bearish. However, conditions in the country remain hot and dry in the country overall, and more moisture will be needed going forward.
Census data showed that the United States exported 9.67 million tonnes of soybeans in November, which was down by 1.2 per cent from the previous month and well off what moved during the same month a year ago.
CORN was also lower after an early attempt at correcting higher failed to see much follow-through.
U.S. corn exports in November of 2.43 million tonnes was up by 17 per cent from October, but only about half of what moved during the same month a year ago.
WHEAT was mixed, with gains in Minneapolis spring wheat and Chicago soft wheat, but losses in Kansas City hard red winter wheat. Recent precipitation in the dry Southern Plains likely accounted for some of the selling pressure in the Kansas City contracts.
End user bargain hunting provided some support, on ideas recent losses were overdone.
Uncertainty over grain exports through the Black Sea remained a feature in the background of the wheat market.
