By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, February 3 – THE ICE Futures Canada canola market finished weaker Wednesday, pressured by sharp changes within the Canadian dollar.
The Canadian dollar was up well over a cent relative to its US counterpart, which made canola less attractive to domestic crushers and overseas buyers.
Steady farmer selling and the potential for large supplies of South American soybeans to enter the market contributed to the declines.
Losses in Chicago soybeans were also bearish.
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However, on the other side of the coin, gains in crude oil and Chicago soyoil helped cushion the fall for canola.
Malaysian palm oil futures reached a 20-month high on Wednesday, which gave strength to canola futures.
Both the March and May contracts temporarily broke below key technical support points on the charts but ultimately settled off of those lows.
Around 18,676 canola contracts were traded on Wednesday, which compares with Tuesday when around 28,736 contracts changed hands. Spreading accounted for about 12,216 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade closed about seven to nine cents per bushel weaker on Wednesday, as favourable weather in South America pressured prices.
Brazil and Argentina are both expected to see rainfall, which will benefit crops in those regions.
Increased domestic selling in the US further pressured prices on Wednesday.
SOYOIL prices settled higher on Wednesday, supported by stronger crude oil futures.
SOYMEAL closed weaker on Wednesday, tracking nearby grain and oilseed markets.
CORN futures closed about one to two cents per bushel weaker on Wednesday, predominantly following weakness in the soybean market, analysts say.
Favourable weather in Argentina and Brazil also pressured prices on Wednesday.
However, investor short-covering limited losses on Wednesday.
WHEAT closed about three to four cents per bushel higher on Wednesday, on mixed reports about top-buyer Egypt’s sanitary restrictions.
Some analysts say Egypt is imposing strict sanitary restrictions on foreign wheat after rejecting a cargo from France, while others say the country is easing up.
– Japan has put out a tender for 141,275 metric tonnes of food quality wheat for shipment in March and April, analysts say.
– North Carolina will be receiving two shipments of South American wheat in February.
