By Phil Franz-Warkentin, MarketsFarm
Winnipeg, Jan. 16 (MarketsFarm) – ICE Futures canola contracts held steady on Thursday, seeing some consolidation after recent declines.
After falling by roughly C$10 per tonne over the past week, canola was due for a correction and some bargain-hunting likely came forward to provide support.
A lack of farmer selling contributed to the firmer tone in canola, as cold Prairie weather slows country movement.
However, losses in Chicago Board of Trade soybeans and soyoil did put some spillover pressure on values. Ample old crop supplies also remained a bearish influence in the background.
About 14,099 canola contracts traded on Thursday, which compares with Wednesday when 29,972 contracts changed hands. Spreading accounted for 7,712 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Thursday, seeing some follow-through selling after Wednesday’s declines.
While the phase one trade deal signed by the United States and China on Wednesday includes promises for increased Chinese purchases of U.S. agricultural goods, traders skeptical over whether or not the targets will be reached.
Large U.S. soyoil supplies and recent weakness in Malaysian palm oil also weighed on prices.
However, solid weekly export data helped temper the declines. The U.S. Department of Agriculture reported weekly U.S. soybean export sales of about 711,000 tonnes, which was up by 40 per cent from the previous week.
CORN posted large losses in sympathy with wheat and soybeans. Bearish technical signals and the general wariness over the U.S./China trade deal contributed to the declines
However, weekly U.S. corn export sales of just under 800,000 tonnes were up sharply from the previous week and provided some support.
The U.S. Senate passed the U.S./Mexico/Canada trade deal this morning, which should open the door for more U.S. corn sales to Mexico going forward.
WHEAT futures posted large losses, backing away from the highs hit Thursday as values ran into upside resistance.
Weekly U.S. wheat export sales of 650,000 tonnes showed a considerable improvement from the previous week, which provided some support.
France’s Strategie Grains forecast the 2020 European wheat crop at 139.8 million tonnes, which would be down slightly from an earlier estimate of 140.5 million.
Futures Prices as of January 16, 2020
Prices are in Canadian dollars per metric ton