By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, April 22 – THE ICE Futures Canada canola market suffered losses on Friday in sympathy with a sharply lower US soy complex.
Declines in Malaysian palm oil and European rapeseed futures added to Friday’s drop.
The Canadian dollar was about a quarter of a cent stronger relative to its US counterpart which made canola less enticing to out-of-country buyers.
There is growing speculation that recent rains in Argentina have not been as damaging to the soybean crop as initially thought.
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Large funds took profits.
However, canola’s downturn lagged the losses in US soybeans, according to a trader.
This week’s planting intentions report by Statistics Canada continued to support the market.
Crude oil is higher which was bullish for canola.
Milling wheat, barley and durum were untraded and unchanged.
Around 33,169 canola contracts traded on Friday, which compares with Thursday when around 42,869 contracts changed hands. Spreading accounted for about 17,156 of the contracts traded.
Milling wheat, barley and durum were untraded and unchanged.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed seven to 32 cents per bushel lower on Friday, pressured by investor profit-taking after sharp gains on the week.
Argentina is expected to see drier weather going forward, analysts say, which pressured prices.
US soybean stockpiles are expected to reach a nine-year-high, which added to the declines.
Weakness in the soy oil and Malaysian palm oil markets was also bearish.
SOYOIL prices settled weaker on Friday, tracking Malaysian palm oil.
SOYMEAL closed lower on Friday, following nearby grain and oilseed markets.
CORN futures closed 10 to 13 cents per bushel lower on Friday, also pressured by profit-taking.
The expectation that Brazil will get rain increased losses ahead of the weekend.
Corn prices had rallied due to dryness in Brazil during the pollination period.
Increased farmer-selling at higher prices added to the bearish tone.
WHEAT closed 25 to 29 cents per bushel weaker on Friday, extending losses after sharp gains in earlier sessions.
Strong commercial selling was also a feature on Friday.
Analysts say US wheat is in good condition, which is bearish.
– China’s wheat production is expected to drop for the first time in more than 12 years, market watchers say.
– 91 per cent of France’s soft wheat crop is expected to be in good condition, according to reports out of the country.
