By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Dec. 21 (CNS Canada) – ICE Futures canola contracts were weaker on Friday, taking some direction from the Chicago Board of Trade soy complex as traders squared positions ahead of Christmas and the New Year.
Bearish technical signals, a lack of significant demand, and large supplies in the commercial pipeline all contributed to the losses in canola, according to participants.
However, weakness in the Canadian dollar provided some underlying support, as the currency fell by roughly half a cent relative to its US counterpart.
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The North American grain markets will trade reduced hours on Monday, Dec. 24, before closing for Christmas. The Chicago markets reopen on Wednesday, while ICE canola will remain closed through Boxing Day, Dec. 26, with trade resuming for the Dec. 27 session.
About 32,190 canola contracts traded on Friday, which compares with Thursday when 24,749 contracts changed hands. Spreading accounted for 28,658 of the contracts traded.
SOYBEAN futures were lower on Friday, as volatility in the outside equity markets weighed on values and traders looked for confirmation of more export demand.
While China was buying soybeans from the United States this week, the pace of Chinese purchases was still not enough to cut into the large U.S. ending stocks projections.
Favourable South American crop conditions also weighed on values, with expectations for record large production in Brazil this year as early harvest operations get underway.
The U.S. Department of Agriculture (USDA) announced a flash sale of 115,500 tonnes of soybeans to unknown destinations this morning.
CORN futures were higher, seeing a correction following recent declines as traders adjusted positions and booked profits.
The USDA announced flash sales of 222,504 tonnes to unknown destinations Friday morning.
WHEAT futures were weaker on Friday, as Russian wheat exports were still showing no signs of slowing down.
While there had been some thoughts that tightening supplies would lead to reductions in Russian wheat sales, the country’s agriculture ministry actually raised its wheat export forecast for the year by two million tonnes, to 37 million tonnes.
Argentina’s wheat harvest was running slightly behind average, at 68 per cent complete, according to a report.
