By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, Feb. 23 (CNS Canada) – ICE Futures Canada canola contracts were down sharply on Thursday, as the market reacted to a selloff in Chicago Board of Trade soybeans and chart-based selling built on itself.
At its annual outlook conference the USDA forecast a 5.5 per cent increase in US soybean acres this spring, which weighed heavily on soybeans. Good South American production prospects were also bearish for the oilseeds in general, including canola.
Strength in the Canadian dollar contributed to the weakness in canola, as crush margins lost another four dollars on the day.
Read Also
Canadian Financial Close: Loonie, crude oil advance
The Canadian dollar reached its highest close in nine days on Wednesday, aided by higher crude oil prices. The loonie…
Milling wheat, durum, and barley were all untraded.
About 26,747 canola contracts were traded on Thursday, which compares with Wednesday when 24,419 contracts changed hands. Spreading accounted for 13,684 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
SOYBEAN futures at the Chicago Board of Trade declined on Thursday, pressured by reports of strong yields from Brazil.
The country’s estimated soybean production is now expected to hit a record 107.8 million metric tonnes, compared with the previously estimated 105.3 million metric tonnes, Brazilian agribusiness firm, Agroconsult, said.
The same agency expects Argentina’s production will reach 54 million metric tonnes.
High soybean seeding estimates from the United States Department of Agriculture (USDA) added to the downside.
On the technical side, the March contract closed below its 100-day moving average.
Spillover pressure from the Malaysian palm oil and the nearby soy oil market were also bearish for values.
SOYOIL prices closed lower on Thursday with weakness in Malaysian palm oil.
SOYMEAL closed weaker on Thursday.
CORN futures closed lower on Thursday, also pressured by reports of high production from Brazil.
Chart-based selling was bearish for values.
However, weakness in the US dollar limited the downside.
The USDA expects a decline in corn acres this year, which was supportive.
WHEAT lost ground on Thursday, correcting after sharp advances in the previous session.
Reports of mostly favourable crop conditions in the Great Plains added to the downside.
However, losses in the US dollar also underpinned the grain.
Wheat acres reported by the USDA are expected to be down eight per cent on the year, which further limited losses.
