By Phil Franz-Warkentin, MarketsFarm
WINNIPEG (MarketsFarm) – The ICE Futures canola market was weaker on Friday, although off its session lows as values saw some adjustment relative to the Chicago soy complex.
While Chicago soyoil and soybeans were both down sharply on Friday, canola had already posted large losses on Thursday when markets in the United States were closed for Thanksgiving.
Losses in European rapeseed and Malaysian palm oil futures, along with a stronger tone in the Canadian dollar, also weighed on canola prices.
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Increased export demand at the lows and a lack of significant farmer selling provided underlying support.
There were an estimated 20,139 contracts traded on Friday, which compares with Thursday when 12,540 contracts traded. Spreading accounted for 11,584 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade fell were sharply lower on Friday, seeing a continuation of Wednesday’s Thanksgiving selloff. The market was closed Thursday and only open for reduced hours on Friday.
Scattered showers in some dry regions of Brazil were bearish, with wet southern regions of the country seeing a break from precipitation.
Solid export demand provided some underlying support, although at 961,000 tonnes the weekly United States soybean export sales were the smallest in seven weeks. The U.S. Department of Agriculture did announce additional flash sales of 129,000 tonnes to China and 323,400 tonnes to unknown destinations.
Brazil’s government has approved a mandate to raise domestic biodiesel usage to 14 per cent in 2024, from 12 per cent now, which would likely lead to reduced Brazilian soyoil exports and world price increases.
CORN futures were pulled down with soybeans, although the losses were much more subdued.
Weekly U.S. corn export sales of 1.4 million tonnes were at the higher end of trade expectations providing some support.
WHEAT was weaker across the board, hitting contract lows in many months as speculative selling pressure and disappointing export sales weighed on prices.
Weekly U.S. wheat export sales of 171,753 tonnes of old crop business were at the low end of trade expectations, with only 25,450 tonnes of new crop business reported.
Stiff competition from Russia continued to weigh on prices, with the country said to be trimming their export tax on wheat.
