By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Nov. 8 (CNS Canada) – ICE Futures canola contracts were weaker on Thursday, although the market finished well off its session lows as traders reacted to activity in the Chicago Board of Trade soy market.
Updated supply/demand numbers from the United States Department of Agriculture were bearish for soybeans, and early selling pressure there spilled into canola.
Large supplies in the commercial pipeline added to the softer tone in canola, with end users only showing interest on a scale-down basis.
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The January contract briefly traded below the C$480 per tonne mark, but managed to settle well above that chart point as CBOT soybeans bounced off of their session lows to settle near unchanged.
About 10,862 canola contracts traded, which compares with Wednesday when 11,997 contracts changed hands. Spreading accounted for 3,282 of the contracts traded.
SOYBEAN futures at the Chicago Board of trade settled with only small losses in the most active contracts, recovering from sharp declines earlier in the day as the market digested the latest supply/demand numbers from the United States Department of Agriculture.
The USDA lowered its U.S. soybean production estimate for the year by 90 million bushels, to 4.6 billion, but also cut its export forecast by 160 million bushels. As a result, the ending stocks forecast climbed by 70 million bushels to 955 million which was well above average trade guesses.
World soybean ending stocks were up by 2 million tonnes from the October estimate, at 112.08 million.
Weekly U.S. soybean export sales of about 390,000 tonnes were at the lower end of market expectations – putting additional pressure on the futures.
CORN was firmer at the close after trading to both sides of unchanged.
The USDA lowered its yield projection for the U.S. corn crop – bringing the production estimate down by 152 million bushels, to 14.6 billion. Ending stocks were lowered by 77 million, to 1.736 billion bushels.
However, world corn carryout was revised sharply higher, with the 307.5 million tonne forecast nearly double the October estimate.
Weekly U.S. corn export sales of about 700,000 tonnes were up from the previous week and in line with trade estimates.
WHEAT futures were steady to lower. Projected U.S. wheat ending stocks were lowered by 9 million bushels, to 949 million. However, expected world wheat ending stocks were raised by 6.5 million tonnes, to 266.7 million.
Weekly U.S. wheat export sales of 660,000 tonnes were above average trade estimates and provided some support.
