By Terryn Shiells, Commodity News Service Canada
WINNIPEG, May 28 – The ICE Futures Canada canola market ended weaker on Thursday, taking some direction from a softer Chicago soybean market.
Technical based selling was also bearish, as the July contract failed to hold above the psychological C$470 per tonne level hit during the session, analysts said.
The large global oilseed supply situation and a recovery seen in the Canadian dollar further undermined canola.
However, tight supply worries, slow farmer selling in Western Canada and strength in Chicago soyoil futures were supportive.
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Traders are also still concerned about dry conditions harming recently planted canola crops, with some regions of Alberta not seeing any precipitation since their last snow fall. While there are some light rains in the forecast for Western Canada, the heaviest amounts are expected to hit southern Manitoba, where dryness is less of a concern.
About 17,326 contracts traded on Thursday, which compares with Wednesday when 22,260 contracts changed hands. Spreading accounted for 8,148 of the trades.
Milling wheat, durum and barley futures were untraded. Though, the Exchange moved wheat prices slightly higher following Thursday’s close.
Chicago soybean futures were one to five cents US per bushel weaker on Thursday, as the large global supply situation continued to overhang values.
Generally good weather for the US soybean crop so far this spring was also bearish, according to analysts.
On the other side, worries about another strike in Argentina slowing soybean movement were supportive, as was steady demand for US beans.
The new crop November contract briefly broke below the psychological level of US$9.00 per bushel during Thursday’s trading session.
SOYOIL futures moved higher Thursday, supported by strength in outside vegetable oil markets.
SOYMEAL futures ended lower, with spreading against soyoil a feature of the activity, market watchers said.
CORN futures in Chicago finished two to four cents a bushel higher on Thursday, also lifted by short covering following recent losses.
Signs that demand from the domestic ethanol industry is increasing added to the bullish tone, traders said.
However, continued good weather conditions for most of the US corn crop limited the advances.
WHEAT futures at the Chicago Board of Trade closed one to three cents US per bushel firmer on Thursday, seeing some short covering following recent losses.
Further support came from worries about dry conditions harming wheat production in Western Canada and Russia, according to participants.
Though, signs that the US winter wheat crop is in better shape than expected weighed on prices, as did a strong US dollar index and large global supplies.
• Japan made a purchase of 103,000 tonnes of North American wheat overnight, with 69,000 tonnes from the US and 34,000 tonnes from Canada.
• SovEcon in Russia pegs the 2015 crop at 54 million metric tons, down from 59 million in 2014, due to unfavourable dry weather.
• Egpyt’s grain authority, Gasc, purchased 240,000 tonnes of wheat on Thursday, mostly from Russia. The total value was $47.8 million, reports say.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
