By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Dec. 20 (CNS Canada) – ICE Futures canola contracts were weaker on Thursday, as losses in most outside equity and energy markets spilled into the grains and oilseeds.
Declines in Chicago Board of Trade soybean and soyoil contracts contributed to the softer tone in canola, with the losses in soybeans coming despite some solid weekly export data.
Ample canola supplies in the commercial pipeline and a seasonal slowdown in demand also weighed on canola, according to participants.
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However, weakness in the Canadian dollar provided some underlying support as the currency dipped below 74 U.S. cents.
About 24,749 canola contracts traded, which compares with Wednesday when 24,162 contracts changed hands. Spreading accounted for 17,550 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Thursday, as the selloff in the stock market spilled into the market.
The losses in beans came despite strong export business, with traders still looking for more sales.
The United States Department of Agriculture (USDA) reported weekly U.S. soybean export sales of 2.8 million tonnes, which topped trade expectations. Additional flash sales of 200,000 tonnes to China and another 250,000 tonnes to unknown destinations were also reported.
There was talk that China could buy another two million tonnes over the next week, although trade relations between the U.S. and China remain somewhat shaky after the U.S. charged two Chinese men with hacking into U.S. government networks.
CORN futures were also pressured lower by the broad-based sense of risk-aversion in the financial markets.
The USDA announced weekly corn export sales of nearly two million tonnes for delivery during the current crop year and an additional 542,000 tonnes for 2019/20.
The USDA also announced additional private sales of 426,000 tonnes to Mexico this morning.
WHEAT settled near unchanged, seeing some consolidation after yesterday’s declines.
Chart-based positioning was a feature – as the weekly export data was relatively soft for wheat. The USDA reported weekly wheat export sales of only 313,000 tonnes, which was below trade estimates and well off the previous week’s total.
