By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, April 7 (CNS Canada) – ICE Futures Canada canola contracts were weaker at Thursday’s close, although conflicting outside factors kept the market trading within a rather narrow range.
On the one hand, losses in CBOT soyoil and soybeans did weigh on values throughout the day. However, weakness in the Canadian dollar was also supportive on the other hand; countering much of the spillover pressure.
Speculative short covering accounted for some buying interest, with routine exporter and domestic crusher demand also underpinning the futures.
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However, steady farmer selling on the other side limited any attempts at breaking higher. A generally bearish tone in the outside financial and energy markets also pressured values.
About 25,208 canola contracts were traded on Thursday, which compares with Wednesday when 19,954 contracts changed hands. Spreading accounted for about 20,420 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed two to three cents per bushel weaker on Thursday, as lower prices for soymeal and soyoil weighed on the market.
Lower crude prices added to the declines, since they make turning soybeans into biodiesel less appealing to processors, which is bearish.
However, limited producer selling from Brazil kept a lid on losses, as did stronger export sales from the United States Department of Agriculture (USDA).
Soybean sales for the week ended March 31 totalled 420,400 metric tonnes, up from the prior week and two per cent higher than the previous four-week average.
SOYOIL prices settled lower on Thursday, tracking losses in Malaysian palm oil.
Weak export sales further pressured the market.
SOYMEAL closed lower on Thursday, as exports fell to a marketing year low in the week ended March 31, USDA data says.
Net sales of 23,300 metric tonnes were down 89 per cent from the previous week and from the prior four-week average.
CORN futures closed three to four cents per bushel stronger on Thursday, propped up by stronger demand for the commodity.
Now that Brazil has finished marketing its first crop there is more demand for US product.
Corn exports for the week ended March 31 totalled 945,200 metric tonnes, which is up 20 per cent from the previous week, but down five per cent from the prior four-week average.
However, spillover weakness from the wheat market limited gains on Thursday.
WHEAT closed five to six cents per bushel weaker on Thursday, pressured by export sales falling to a marketing year low.
Wheat sales reductions were at 58,100 metric tonnes as of March 31, as total cancellations countered fresh business, according to USDA data.
– Egypt tenders for optional origin wheat, with a maximum moisture level of 13 per cent, market watchers say.
– South Korea has bought Australian milling wheat, analysts say.
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