By Jade Markus, Commodity News Service Canada
Winnipeg, May 19 (CNS Canada) – ICE Futures Canada canola contracts ended mixed, but mostly lower, on Thursday as losses in Chicago Board of Trade soybeans and soy oil continued to pressure the market.
US soybean markets lost ground on Thursday as gains in the country’s currency, and declines in crude oil pressured the market, which caused spillover losses in canola.
Soy oil tracked Malaysian palm oil lower, which added to the bearish tone in far contracts.
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However, the nearby July contract was able to gather some traction at the close, supported by weakness in the Canadian dollar.
The loonie lost ground against its US counterpart throughout the day on Thursday, moving below 77 US cents, and falling to a one-month low.
Weakness in the currency is bullish for canola as it makes the commodity more appealing to international buyers.
Investor short-covering was also a feature in the July contract.
About 17,245 canola contracts were traded on Thursday, which compares with Wednesday when 23,566 contracts changed hands.
Milling wheat, durum and barley futures were all untraded and unchanged.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed six to eleven cents per bushel weaker on Thursday, pressured by gains in the US dollar.
The greenback advanced with indications that the US Federal Reserve could raise interest rates this summer.
Losses in crude oil also pressured the soy market, as it makes blending the commodity into biodiesel less appealing to processors.
The expectation that some US farmers are planting soybeans instead of corn further pressured the market.
Spillover weakness from soy oil also had a bearish effect.
However, strong export sales limited losses on Thursday.
Soybean sales in the week ended May 12 were up 34 per cent from the previous four-week average, according to United States Department of Agriculture data.
SOYOIL prices closed weaker on Thursday, tracking losses in Malaysian palm oil.
SOYMEAL closed stronger on Thursday.
CORN futures closed seven to nine cents per bushel weaker on Thursday, as the market was pressured by a stronger US dollar, which has the potential to curb exports.
Favourable weather in parts of the US Midwest added to the declines, as it helps farmers with seeding, which is bearish.
Losses in crude oil further added to the declines.
Strong export sales and freezing temperatures in some parts of the US limited losses on Thursday.
WHEAT closed six to eleven cents per bushel lower Thursday, as spillover losses from corn pressured the market.
Lower export sales reported by the USDA added to the declines.
Wheat sales were down 41 percent from the previous week and 37 percent from the previous four-week average, according to USDA data.
– Europe’s ending stocks are expected to be lower due to increased exports, according to analyst projections.
– Japan bought 68.2 thousand metric tonnes of US wheat, 28.7 thousand metric tonnes of Canadian wheat, and 24.4 thousand metric tonnes of Australian wheat in its weekly tender, market watchers say.
