By Jade Markus and Dave Sims, Commodity News Service Canada
Winnipeg, February 16 (CNS Canada) – ICE Futures Canada canola closed weaker on Thursday, pressured by losses in the US soybean and soy oil markets.
Soy oil was tracking overnight declines in Malaysian palm oil. Chicago Board of Trade soybeans lost ground with favourable production prospects for Brazil and Argentina.
Strength in the Canadian dollar added further pressure to values.
Market watchers say canola’s technical bias is to the downside, which added to the bearish tone.
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About 23,804 canola contracts traded on Thursday, which compares with Wednesday when 21,966 contracts changed hands. Spreading accounted for about 17,352 of the contracts traded.
Milling wheat, durum and barley futures were all untraded and unchanged.
SOYBEAN futures at the Chicago Board of Trade corrected 10 to 17 cents per bushel lower Thursday. Sellers took hold of the market in the wake of Wednesday’s highs.
The market was undermined by expectations soybean stockpiles will soon hit their highest point in nearly ten years. International customers, most notably China, have begun to focus their attention on South American supplies.
SOYOIL futures plunged 40 to 42 points on Thursday.
SOYMEAL futures dropped on the day tracking soybeans.
CORN futures in Chicago finished four to five cents per bushel lower Thursday as traders took profits after yesterday’s rally.
Export sales numbers were lower than most analysts expected, which was bearish.
Spillover losses in soybeans contributed to the downfall.
WHEAT futures in Chicago fell five to seven cents per bushel Thursday as the bears took control of the market after yesterday’s gains.
The US Southern Plains continue to receive precipitation, which is expected to help remedy dry soil conditions in many areas.
On the other side, weakness in the US dollar limited the losses.
