By Jade Markus and Dave Sims, Commodity News Service Canada
Winnipeg, January 6 (CNS Canada) – ICE Futures Canada canola settled lower ahead of the weekend.
The market closed below the technically important C$500 a tonne level in the March contract, pressured by sharp declines in the Chicago Board of Trade soy complex.
CBOT soybeans, soymeal, and soyoil fell on Friday as the United States Department of Agriculture released its weekly export sales report, showing sales of the oilseed had reached a marketing year low.
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The Canadian dollar reversed lower by close on Friday, but its general strength left residual pressure on canola.
The loonie has advanced more than one per cent against its US counterpart on the week, which is bearish.
About 21,422 canola contracts traded on Friday, which compares with Thursday when 12,348 contracts changed hands.
Spreading accounted for about 7,362 of the contracts traded.
Barley futures were untraded and unchanged, while milling wheat and durum were revised lower after the close.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade dropped 17 cents per bushel on Friday, due to disappointing weekly US sales data.
There are ideas South America has taken the driver’s seat from the US in soybean sales.
Excess dryness in Argentina could reduce soybean acreage by four per cent to 19.3 million hectares, an analyst said.
SOYOIL futures dipped 23 to 24 points on Friday.
SOYMEAL futures also fell in sympathy with soybeans.
CORN futures in Chicago ended two to three cents per bushel weaker as farmers dumped contracts in response to the stronger US dollar.
Exports sales in the US came in below most analysts’ expectations, which was bearish.
Traders are showing caution ahead of the USDA’s major report, due on January 12.
WHEAT futures in Chicago finished one cent per bushel lower on Friday, as strength in the US dollar and disappointing US sales data weighed down prices.
Large global supplies of wheat were bearish for the market.
On the other side, US winter wheat acres are expected by some analysts to be down three to four percent in the upcoming USDA report.
