By Phil Franz-Warkentin and Dave Sims, Commodity News Service Canada
Winnipeg, June 1 (CNS Canada) – ICE Futures Canada canola contracts were down on Thursday, as fund liquidation weighed on prices for the seventh-straight session.
Speculative selling was a feature, as prices dropped below nearby support and some stops were hit on the way down, according to participants.
A lack of commercial buying interest contributed to the declines, as end user demand typically backs away at this time of year.
However, tightening old crop supplies and persistent seeding delays in parts of Western Canada helped limit the losses.
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Ideas canola was looking oversold and due for a correction also provided support.
About 27,091 canola contracts traded on Thursday, which compares with Wednesday when 23,950 contracts changed hands. Spreading accounted for 15,058 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
CORN futures in Chicago finished one to two cents per bushel lower on Thursday due to hedge pressure.
China is selling six million tonnes of corn from its state reserve, which weighed down the market.
However, South Korea stepped forward with a purchase of 66,000 tonnes.
SOYBEAN futures at the Chicago Board of Trade finished one to three cents lower as traders took profits.
Soybean planting area in Brazil is expected to grow by two to three per cent next year, which is bearish.
Chinese soybean imports are slowing, according to a report.
SOYOIL futures ended six to nine points lower on Thursday.
SOYMEAL futures finished slightly lower on Thursday.
WHEAT futures in Chicago finished relatively unchanged on Thursday.
The market is taking some support from the tightening supply of high-protein wheat in the US.
On the other side, Russia plans to export a higher amount of grain this year, 37 to 38 million tonnes, which is an increase from last year’s total of 34 to 35 million.
