By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, April 30 – The ICE Futures Canada canola market finished slightly lower in the most active months after bouncing around unchanged Thursday in thin-volume, two-sided trade.
Losses in US soybeans and soymeal forged the path of least resistance downward.
A lack of participants in the marketplace kept canola hemmed in for the most part, said a trader.
“It’s tough to get in and tough to get out. Crush margins are terrible so the crushers aren’t doing anything, there’s no producers selling and exporters can’t do anything because of the strong Canadian dollar,” he said.
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Large world supplies also weighed on values.
However, the Canadian dollar was weaker against its American counterpart which made canola more attractive on the international market and helped to limit the losses.
Malaysian palm oil was higher which was supportive along with a lack of farmer selling.
A lack of moisture in some parts of the Prairies was also bullish, according to an analyst.
The nearby May contract posted the biggest gains as participants were exiting the front month.
Around 14,164 canola contracts were traded on Thursday, which compares with Wednesday when around 17,458 contracts changed hands.
Milling wheat, barley and durum were all untraded.
SOYBEAN futures at the Chicago Board of Trade were down by 9 to 12 cents per bushel on Thursday, as the market backed off of the one-month highs hit earlier in the week.
Ideas that there are still plenty of soybeans moving out of South America, despite the latest labour unrest at Argentina’s Port of Rosario, added to the softer tone.
The USDA’s weekly export sales report included net cancellations of 118,000 tonnes of new crop business, which put some further pressure on values. However, old crop business was still solid, which did provide some support.
SOYOIL settled narrowly mixed on Thursday.
SOYMEAL futures were weaker on Thursday, following soybeans.
CORN futures in Chicago settled one to three cents per bushel lower on Thursday, as great US planting weather and spillover from the losses in wheat weighed on prices.
With warm temperatures and only minimal precipitation in the forecasts, Midwestern farmers are expected to be making good seeding progress this week.
Ongoing concerns over avian influenza and a reduction in feed demand from the poultry sector also weighed on corn values, according to participants.
Weekly US corn export sales did beat trade guesses, which helped temper the declines.
WHEAT futures in Chicago were down by nine to 10 cents on Thursday, as the market reacted to a bearish weekly export sales report. Minneapolis and Kansas City wheat futures posted similar losses.
The USDA reported net cancellations of 449,167 tonnes of wheat that had originally been set to be exported during the current marketing year.
Increased competition from cheaper European and Black Sea origin supplies kept the path of least resistance pointed lower for the US futures. Ideas that Russia will soon ease restrictions on wheat exports were also bearish for prices overall.
– While the large cancellations of old crop US wheat business was bearish, some of that business was transferred to the new crop and nearly 853,000 tonnes of US wheat were sold for delivery in the upcoming 2015/16 crop year.
– Russia’s spring wheat plantings are estimated at 16% complete, according to reports. In Ukraine, spring wheat seeding is about 50% complete.
– South Korea is tendering to purchase 50,000 tonnes of US wheat.
