By Dave Sims, Commodity News Service Canada
Winnipeg, April 13 (CNS Canada) – The ICE Futures Canada canola market suffered losses on Friday, as traders positioned themselves ahead of the weekend.
Declines in the United States soy complex also dragged down prices.
Technical resistance was a factor behind the losses and there are still ideas that the market is overbought.
This year’s canola carryout is expected to be large while some corn acres in the U.S. could be switched to soybeans.
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However, an analyst in Winnipeg said he thought canola was still showing a lot of independent strength.
“I don’t think we have a case here of canola breaking down,” he said, referring to this week’s losses. “The futures are still respecting the upward trend line that’s been drawn off the mid-March low.”
Cold weather across the Prairies is threatening to delay seeding.
Around 22,567 canola contracts were traded on Friday, which compares with Thursday when around 30,039 contracts changed hands. Spreading accounted for 16,620 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market recorded losses to end the week due to technical selling.
Traders were squaring positions before the weekend.
Thursday’s disappointing U.S. export sales data continued to weigh on values.
Corn futures finished weaker on Friday, taking spillover losses from wheat.
China sold 86 per cent of the corn it had up for auction today.
Snow and more cold weather is hitting the US Plains and Northwest.
Chicago wheat futures were significantly lower on Friday due to technical selling and sluggish U.S. exports.
Some rain is expected to fall in Kansas in a few days’ time which should help alleviate some of the drought stress in the region.
Flour mills in Taiwan are trying to acquire 92,000 tonnes of wheat.
