By Phil Franz-Warkentin, Commodity News Service
Winnipeg, April 15 (CNS Canada) – ICE Futures Canada canola contracts were down on Friday, tracking losses in soyoil.
Larger-than-expected soyoil stocks in the monthly National Oilseed Processors Association (NOPA) crush data accounted for some of the weakness in soyoil that spilled into the canola market. Crude oil was also down on the day.
Chart based selling contributed to the softer tone in canola, as the market appears to have run into major resistance just above C$480 per tonne in the nearby May contract.
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However, gains in CBOT soybeans and steady end-user demand did provide underlying support.
The need to keep some weather premiums in the market through the spring seeding period was also supportive, with dryness being watched in some parts of the Prairies and excess moisture in others.
About 31,181 canola contracts were traded on Friday, which compares with Thursday when 25,969 contracts changed hands. Spreading was a feature, accounting for 22,848 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded.
SOYBEAN futures at the Chicago Board of Trade were up four to eight cents per bushel on Friday, as mounting production concerns in Argentina provided support.
Heavy rains in the forecast will likely cause further harvest delays and may see production cut by as much as three million tonnes in Argentina, according to reports.
Monthly US crush data came in above market expectations, with 156.7 million bushels processed in March, according to a report from the National Oilseed Processors Association. Solid demand for soymeal was driving the crush pace. However, soyoil stocks grew considerably, and the ample oil supplies weighed on that side of the soy complex.
SOYOIL futures were down on Friday, with losses in crude oil and the burdensome supply situation weighing on prices.
SOYMEAL futures were up on Friday.
CORN futures in Chicago were up two to four cents per bushel on Friday, hitting fresh four month highs as a move above nearby chart resistance encouraged additional fund short-covering.
Production concerns in Brazil and good export demand were also supportive. The USDA reported a fresh sale of 344,200 tonnes of US corn to unknown destinations this morning.
However, forecasts calling for some favourable seeding weather across much of the Midwest over the next two weeks kept a lid on the upside.
WHEAT futures in Chicago were steady to up two cents, taking some direction from the advances in corn. Speculative short covering also underpinned the futures.
However, expectations for improving moisture conditions across much of the US southern Plains weighed on prices, with good wheat crops elsewhere in the world also bearish in general.
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