By Terryn Shiells and Dave Sims, Commodity News Service Canada
Winnipeg, April 17 – ICE Futures Canada canola contracts closed weaker, following the declines seen in Chicago soyoil futures on Thursday.
A recent pickup in farmer hedging was also bearish, as was the upswing in the value of the Canadian dollar, analysts said.
Profit taking ahead of the long weekend, as markets will be closed for Good Friday on April 18, put further downward pressure on prices.
Canada’s burdensome supply situation and ideas that farmers will plant more canola this year compared to last were also bearish.
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However, sentiment that canola remains undervalued compared to other oilseeds limited the losses.
About 21,953 canola contracts were traded on Thursday, which compares with Wednesday when 25,757 contracts changed hands. Spreading was a feature of the activity.
Milling wheat, durum and barley futures were untraded though the Exchange adjusted prices after the close on Thursday.
SOYBEAN futures at the Chicago Board of Trade fell one to four cents on Thursday as information emerged showing demand for US supplies could be weakening.
According to the USDA, in the week ended April 10, exporters sold 19,200 metrics tonnes of soybeans to overseas buyers, down 79% from the previous four-week average.
Processors in the US may be forced to import supplies from Brazil as US stockpiles are forecast to fall to the lowest mark in a decade, said an analyst.
Markets are now closed for the Easter Weekend.
SOYOIL futures also dropped Thursday as a result of the USDA data.
SOYMEAL futures ended lower with soybeans.
CORN futures in Chicago settled two cents lower on improving weather forecasts for the Midwest corn belt.
The drier, warm weather is expected to give farmers the opportunity they need to hurry planting over the next few weeks.
Only about 3% of the American corn crop had been seeded as of Sunday, well below the five-year average of 6%.
WHEAT futures in Chicago rose three cents on speculation that continued dry weather in the US southern Great Plains will result in diminished wheat production.
Despite forecasts for rain in some regions of the plains this weekend, it will likely be too little, too late, according to one weather service.
Widespread water restrictions and/or shortages are expected in Kansas due to extreme drought conditions, according to a report by the US Drought Monitor.
• China sold less than 17% of the 626 TMT of wheat on offer in a recent sale, well below expectations by analysts.
• Japan bought 136,261 tonnes of food quality wheat from US, Canada and Australia in a regular tender that closed late on Thursday, according to the Japan Ministry of Agriculture.
• Wheat flour millers in Indonesia want their country’s anti-dumping committee to investigate alleged dumping practises by foreign players in the local market. Price differences between locally milled and imported flour are as high as 40 percent, said one of the country’s business groups.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
