By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 13 (MarketsFarm) – The ICE Futures canola market settled with small gains on Thursday, although activity was thin and choppy.
A sharp move higher in Chicago Board of Trade soybeans and soymeal provided some support, but soyoil was down on the day and canola lagged beans to the upside. A firmer tone in the Canadian dollar also weighed on prices.
Bearish technical signals also tempered the gains, with speculators reportedly liquidating some of their long positions.
About 13,614 canola contracts traded on Thursday, which compares with Wednesday when 22,438 contracts changed hands. Spreading accounted for 8,202 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were up sharply on Thursday, as solid export demand provided support.
The United States Department of Agriculture reported weekly U.S. soybean export sales of 570,000 tonnes of old crop business and 2.8 million tonnes of new crop bookings.
Additional export sales of 197,000 tonnes to China and 202,000 tonnes to other unknown destinations were also announced this morning.
CORN futures were also up sharply on the day, with fund buying a feature.
Ideas that the derecho windstorm that hit parts of the Midwest earlier this week did more damage than originally thought contributed to the gains. Up to 10 million acres of cropland in Iowa, a major corn producing state, were reportedly impacted by the storm.
Weekly U.S. corn export sales of about 900,000 tonnes of old and new crop business combined were down on the week, and tempered the upside.
WHEAT futures were higher on Thursday, moving in sympathy with soybeans and corn.
Weekly U.S. wheat export sales of about 360,000 tonnes were down on both the week and the year.
Ample world wheat supplies also kept a lid on the upside.