By Dave Sims, Commodity News Service Canada
Winnipeg, December 7 (CNS Canada) – Canola contracts on the ICE Futures Canada platform recorded losses on Thursday, as traders engaged in follow-through selling on the heels of a bearish report from Statistics Canada.
The canola market was also undermined by losses in U.S. soybeans.
Technical selling was a feature of the day’s activity.
Weakness in Malaysian palm oil futures added to the downside.
However, gains in U.S. soyoil limited the losses.
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“Demand is good,” said a trader in Winnipeg. “I think it’s one of the main things underpinning this bigger canola crop.”
Around 17,212 canola contracts were traded on Thursday, which compares with Wednesday when around 21,814 contracts changed hands. Spreading accounted for 11,020 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade fell nine to 10 cents on Thursday in follow-through selling and profit-taking.
There appears to be a chance for rain in Argentina over the next 10 days, which was bearish.
U.S. soybean exports were down nearly 16 percent in October compared to a year earlier.
Corn finished around one cent lower in chart-based trading.
The agriculture wing of the United Nations pegged global corn production at 1.08 billion tonnes, which was up 1.1 per cent from its previous forecast.
However, corn planting in Argentina is well behind schedule and there are reports some fields may not get seeded at all.
Wheat futures finished three to four cents lower on Thursday, pressured by lukewarm exports and large world supplies.
Strength in the US dollar was bearish for wheat sales.
On the other side, large funds were out looking for bargains.
