By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, July 21 – THE ICE Futures Canada canola market finished slightly lower Thursday due to technical selling.
Reports suggest the current blanket of intense heat in the US Midwest won’t last as long as initially thought, which was bearish for the oilseed market.
Large commercials are being somewhat choosy with their purchases, according to a Winnipeg-based trader.
“Buyers are relaxed, they know a big crop is coming,” he said.
However, both Malaysian palm oil and the US soy complex were higher, which limited today’s losses.
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Excess water in Manitoba and Saskatchewan has thrown a weather premium into the market which was bullish.
There are ideas canola is relatively cheap compared to other oilseeds, which was supportive.
The most-active November contract seems to have found support near the C$460 per tonne level.
About 21,377 canola contracts traded on Thursday, which compares with Wednesday when 18,412 contracts changed hands.
Spreading accounted for about 1,594 of the contracts traded.
Milling wheat, barley and durum were untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed mostly unchanged to five cents per bushel stronger on Thursday.
Despite falling below the previous four-week average, analysts say data released by the United States Department of Agriculture shows strong demand for soybeans.
Net sales of 325,000 metric tonnes for 2015/2016 were down 11 per cent from the previous week and 46 per cent from the prior four-week average, the USDA said in a report for the week ending July 14.
Losses in the US dollar further supported prices.
However, bearish weather forecasts limited gains on Thursday.
Forecasts for August are more favourable for soybean development in key US growing regions than previously thought.
SOYOIL prices closed stronger on Thursday, tracking advances in Malaysian palm oil.
SOYMEAL closed mixed on Thursday.
CORN futures were two to three cents per bushel weaker on Thursday as beneficial rains will support crops through a recent heat wave.
Net sales of 345,100 metric tonnes for 2015/2016 were down 48 per cent from the previous week and 42 per cent from the prior four-week average, the USDA said in a report for the week ending July 14.
Weaker ethanol imports from China added to the declines.
WHEAT closed two to five cents per bushel higher on Thursday, propped up by anticipated crop-loss from France.
Losses in the US dollar further underpinned the market.
Export sales came in ahead of many industry expectations, which was supportive.
Net sales of 478,000 metric tonnes for 2016/2017 were up 50 per cent from the previous week, but down 15 per cent from the prior four-week average, the USDA said in a report for the week ending July 14.
– In the US, protein premiums are increasing as the winter wheat harvest continues.
– Japan’s has bought 165,048 metric tonnes of wheat, market watchers say.
