By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, Feb. 11 (CNS Canada) – ICE Futures Canada canola contracts posted solid gains on Thursday, seeing some follow-through buying interest as the market continued to bounce off of the nearby lows hit earlier in the week.
Advances in CBOT soybeans and soyoil, together with a weaker tone in the Canadian dollar, contributed to the move higher in canola, according to participants.
Solid end user demand, coupled with only limited farmer selling on the other side, provided further support.
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However, after breaking below major support earlier in the week, the longer-term technical trend remains pointed lower and any gains were likely seen as a good selling opportunity from a chart standpoint.
Losses in the outside financial and energy markets also served to limit the upside potential in canola.
About 33,965 canola contracts were traded on Thursday, which compares with Wednesday when 40,446 contracts changed hands. Spreading accounted for about 27,140 of the contracts traded, with participants rolling their positions out of the nearby March contract a feature.
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 about ten to eleven cents per bushel higher on Thursday as the United States Department of Agriculture (USDA) released export data for the week ended February 4.
Soybean sales of 666,800 metric tonnes for 2015/2016 were up noticeably from the previous week and one per cent stronger than the prior four-week average, according to the USDA.
Weakness in the US dollar also supported prices on Thursday.
SOYOIL prices settled stronger on Thursday, tracking Malaysian palm oil.
SOYMEAL closed higher on Thursday, following oilseed markets.
CORN futures closed mostly unchanged Thursday, pressured by weak export data from the USDA.
Corn sales for the week ended February 4 totalled 405,000 metric tonnes for 2015/2016, and were down 64 per cent from the previous week and 57 per cent from the prior four-week average.
Weakness in crude oil futures was also bearish for corn, as it is an ingredient in ethanol production.
Weakness in the US dollar capped losses.
WHEAT closed mostly unchanged to three cents per bushel weaker on Thursday as high global supplies balanced stronger export data.
Wheat sales totalled 263,300 metric tonnes for delivery in the marketing year 2015/2016, and were up noticeably from the previous week and six per cent from the prior four-week average.
– Russian wheat is being offered for $177 to $180 per tonne for 12.5 protein, according to reports.
– Market watchers say Jordan has tendered for 100,000 metric tonnes of optional origin hard wheat.
