THE ICE Futures Canada canola market finished lower, as the volatile Canadian dollar weighed down prices and triggered some selling.
The loonie was up approximately a cent compared to its US counterpart. That upward action may have boosted the value of the Canadian currency but it also made the country’s canola less attractive to out-of-country buyers.
The market was also undermined by weakness in Malaysian palm oil and European rapeseed futures.
Large funds stayed mostly on the sidelines while farmer selling was steady, which contributed to the weakness.
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The South American soybean crop looks to be a large one with some early harvesting already underway in Brazil, according to a report.
Crush margins have also leveled off, the trader said.
However, crude oil and the Chicago Board of Trade soy complex were both higher which limited the downside.
Around 19,022 canola contracts were traded on Thursday, which compares with Wednesday when around 22,057 contracts changed hands. Spreading accounted for about 10,754 of the contracts traded.
Milling wheat and durum were untraded while 25 barley contracts changed hands.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade closed two to five cents per bushel stronger on Thursday as traders expect increased demand from China.
China’s upcoming Lunar New Year is expected to boost oilseed sales, in addition to stronger crush margins in the country.
Weak soybean yields from Mato Grosso, a top soybean producing region in Brazil, also supported prices on Thursday.
SOYOIL prices settled higher on Thursday, following soybean futures.
SOYMEAL closed stronger on Thursday.
CORN futures closed one to two cents per bushel weaker on Thursday, as buying ran out despite a number of supportive factors.
World corn production is expected to lag this year, according to the International Grains Council, which limited losses.
Drought in South Africa contributed to part of the decline in global supplies.
WHEAT closed three to four cents per bushel higher on Thursday, supported by bargain buying.
Prices were also supported by investor short-covering as the market waited for more information on Egypt’s wheat tenders.
– Egypt has put out another wheat tender, for an unspecified amount, according to market watchers.
– India may get a later winter this year, according to reports out of the country, which would be beneficial to wheat crops.
