By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, April 28 (CNS Canada) – ICE Futures Canada canola contracts were lower at Thursday’s close, retreating from earlier advances in the final minutes as early fund buying gave way to farmer hedges.
Early advances in soybeans provided some spillover support for canola, helping take the most active July contract above the psychological C$500 per tonne mark for most of the session.
However, soybeans retreated from their highs, and canola also drifted lower in the final minutes of trade.
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The Canadian dollar was up by nearly half a cent relative to its US counterpart, which was bearish for canola.
CBOT soyoil was also down sharply on the day, which cut further into crush margins.
About 27,109 canola contracts were traded on Thursday, which compares with Wednesday when 25,918 contracts changed hands. Spreading accounted for 11,446 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded, although wheat prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed one cent weaker to five cents per bushel stronger on Thursday, as export data from the United States Department of Agriculture (USDA) caused weakness in front contracts.
Net sales for the week ended April 21 totalled 226,000 metric tonnes for 2015/2016, and were down 45 per cent from the previous week and 36 per cent from the prior four-week average, according to USDA data.
But heavy fund-buying and crop-loss in Argentina tempered losses on Thursday.
SOYOIL prices settled weaker on Thursday, pressured by lower export sales.
SOYMEAL closed stronger on Thursday, following nearby grain and oilseed markets.
The market was further propped up by strong export data.
CORN futures closed one to six cents per bushel stronger on Thursday, as export sales were bullish.
Corn sales for the week ended April 21 totalled 2,160,600 metric tonnes for 2015/2016, which is a marketing-year high, and were up 80 per cent from the previous week, the USDA said.
WHEAT closed two to four cents per bushel stronger on Thursday, supported by losses in the US dollar, which makes the commodity more appealing to international buyers.
Stronger export sales for the week ended April 21 also advanced prices.
Sales of 351,900 metric tonnes for delivery in marketing year 2015/2016 were up 19 per cent from the previous week and up noticeably from the prior four-week average, according to USDA data.
Cold and rainy conditions in the US Midwest added to the bullish tone.
– Saudi Arabia is looking for 550,000 tonnes of hard wheat, market watchers say.
– France’s wheat exports to Indonesia are awaiting a food safety agreement, analysts say.
