By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, May 5 – THE ICE Futures Canada canola market was lower on Thursday tracking losses in the US soy complex.
The vegetable oil market also suffered declines which was bearish for canola.
The Canadian dollar was up slightly relative to its US
counterpart, which made canola less attractive on the international market.
“A lot of the selling recently has been long liquidation spec spreads. It’s not well-established support,” said a Winnipeg-based trader.
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He added seeding conditions in many parts of Saskatchewan were looking excellent.
However, commercial buying was relatively steady which helped prop up prices.
Some mild positioning also took place ahead of tomorrow’s stocks report compiled by Statistics Canada.
Around 12,331 canola contracts traded on Thursday, which compares with Wednesday when around 35,377 contracts changed hands.
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 were down by seven to 21 cents per bushel on Thursday, with fund profit-taking a feature.
A move below nearby support contributed to the declines, with some stops hit on the way down.
Weekly US soybean old and new crop exports combined came in at more than 1.2 million tonnes, which was well above trade estimates and helped limit the losses.
SOYOIL and SOYMEAL futures were down on Thursday.
CORN futures in Chicago were down by one to three cents per bushel on Wednesday, pressured by the active pace of spring seeding seen across the Midwest.
A decline in US weekly ethanol production, coupled with rising supplies of the renewable fuel, contributed to the softer tone.
Weekly US corn exports came in at 769,300 tonnes for delivery during the current 2015/16 marketing year, which was at the low end of trade estimates. New crop sales were well below expectations, at only 60,500 tonnes.
WHEAT futures in Chicago were down by seven to eight cents per bushel, with the relatively favourable US crop conditions behind some of the weakness.
A crop tour of Kansas is taking place this week, and yield reports have come in consistently above the year-ago levels.
Weekly US wheat exports of about 300,000 tonnes (old/new crop combined) were in line with expectations, but at their lowest levels in a month.
– The European Union issued export licences for 848,000 tonnes of soft wheat over the past week, bringing the total during the 2015/16 crop-year-to-date to 25.9 million tonnes, according to reports.
– France exported 2.3 million tonnes of wheat in March, with 1.4 million tonnes leaving the European Union, according to reports. Morocco was one of the largest customers for the French wheat.
