By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, December 22 – THE ICE Futures Canada canola market finished lower on Thursday, tracking sharp losses in Chicago Board of Trade soyoil.
US soybeans, European rapeseed futures and Malaysian palm oil were also weaker, which was bearish for canola.
Traders were adjusting positons ahead of the Christmas break, noted a trader in Winnipeg.
“Some of these funds have been long in the oilseed complex so you can maybe see some profit-taking as you get closer to the end of the calendar year,” he explained.
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Purchases from China have cooled down recently, he added.
However, the Canadian dollar was weaker which helped to prop up canola prices somewhat.
Canola is considered cheap relative to other oilseeds.
Milling wheat, barley and durum were untraded.
About 39,902 canola contracts traded on Thursday which compares with Wednesday when 39,897 contracts changed hands. Spreading accounted for about 27,998 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed nine to 13 cents per bushel weaker on Thursday, pressured by ideas that South America will be able to produce a large crop.
Argentina is expected to get further rains over the next five days, which quells concerns about dryness in the region.
Spillover pressure from the nearby soyoil market added to the downside.
However, soybean exports came in above analyst expectations, which limited losses on Thursday.
Sales reported by the United States Department of Agriculture (USDA) in the week ending December 15 totalled 1.8 million metric tonnes.
SOYOIL prices dropped sharply on Thursday.
SOYMEAL closed weaker on Thursday.
CORN futures were mostly unchanged on Thursday.
Advances in the crude oil market underpinned corn prices, but weakness in soybeans limited the upside.
Market watchers say the grain is largely rangebound ahead of the holidays.
WHEAT closed two cents per bushel lower on Thursday.
Export sales reported by the USDA came in slightly below analyst expectations, which is bearish.
Sales in the week ending December 15 totalled 297,800 metric tonnes, the USDA said.
Estimates from Argentina say the country’s wheat crop will be bigger this year, which added to the downside.
