By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Jan. 6 (MarketsFarm) – The ICE Futures canola market settled with small gains on Thursday despite losses in the Chicago Board of Trade soy complex as the Canadian oilseed continued to show some independent strength.
Tight canola supplies remained a major supportive influence underneath the market, as prices stay firm in an effort to ration demand.
The technical charts are also still pointed higher for canola, although ideas that the market may be looking overpriced at current levels did temper the upside somewhat.
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About 17,885 canola contracts traded on Thursday, which compares with Wednesday when 14,820 contracts changed hands. Spreading accounted for 10,026 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Thursday, taking back some of their recent gains as disappointing weekly export sales weighed on values.
The United States Department of Agriculture reported weekly U.S. soybean export sales at about 383,000 tonnes. That was a marketing year low and below even the bottom end of trade guesses. However, the USDA did announce additional private sales this morning of 102,000 tonnes of soybeans to Mexico
Hot and dry conditions in Argentina and southern Brazil remained supportive, with concerns over yield losses in the region. Excessive moisture in northern Brazil was also delaying early harvest operations there and limiting movement to the ports.
CORN had started the day on the defensive, but managed to edge higher in the most active months despite soft weekly export sales.
Weekly U.S. corn export sales came in at only 256,000 tonnes, which was well below average trade guesses. However, the poor exports were taken with a grain of salt – given the usual slowdown over the holiday period.
WHEAT was down across the board, with the largest losses in Minneapolis spring wheat.
Weekly U.S. wheat export sales below 50,000 tonnes were the lowest in 10 months and well short of expectations.
Losses in global equity markets were another bearish influence on wheat, with expectations for large crops out of the southern hemisphere also weighing on prices today.
