By Dave Sims, Commodity News Service Canada
Winnipeg, November 24 (CNS Canada) – The ICE Futures Canada canola market suffered losses on Friday as weakness in the United States soy complex pointed the way lower.
U.S. markets resumed limited trading hours today. Volumes were light and investors were hesitant to push things too far one way or the other.
Weather conditions in northern Brazil have improved in recent weeks, which is good news for soybeans but bearish for canola.
However, demand for oilseeds remains very strong and the technical bias is pointed higher.
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“(The market) has been trying to hold the up-trending support line drawn off its mid-September low and its coming to a point where that line is intersecting with overhead resistance at C$520 (per tonne),” noted a trader in Winnipeg.
Around 23,558 canola contracts were traded on Friday, which compares with Thursday when around 6,143 contracts changed hands. Spreading accounted for 12,522 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market ended two to four cents lower on Friday.
Soybean export sales came in at 870,000 tonnes, which was well below the million or so tonnes that were expected.
India’s decision to raise taxes on vegetable oil imports continues to be bearish for soybeans.
Soybean planting in Brazil is clipping along at a decent rate, which undermined the market.
The corn market declined one to three cents in technical trading.
Futures were pressured by forecasts calling for world corn production to be larger than previously expected.
Chinese ethanol imports in October were the highest they’ve been since December of 2016.
The Chicago wheat market finished five to seven cents lower to end the week.
Export sales in the U.S. were very disappointing at just under 200,000 tonnes. Most analysts expected they would be in the 350,000 to 550,000 tonne range.
The International Grains Council also hiked its estimate for world grain output to 2.08 billion tonnes, up four million from the previous estimate.
