By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, April 21 – THE ICE Futures Canada canola market ended stronger on Thursday due to a bullish planting intentions report for canola.
Statistics Canada pegged acreage for the current planting season at 19.3 million acres. That is below what most analysts had been anticipating and also below last year’s figure of 20.1 million acres.
Gains in Malaysian palm oil, Chicago soybeans and European rapeseed futures were supportive.
Dryness issues across Western Canada added to the upside.
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The Canadian dollar was lower relative to its US counterpart, which made canola more attractive to international customers.
However losses in Chicago soyoil and crude oil were bearish.
Steady farmer selling limited the gains.
Around 42,869 canola contracts traded on Thursday, which compares with Wednesday when around 54,579 contracts changed hands. Spreading accounted for about 23,878 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 nine cents per bushel stronger to one cent per bushel weaker on Thursday.
Fund buying continued to provide underlying support to prices.
Rain in Argentina will likely cause crop-loss, market watchers say, which added to the advances.
Stronger export sales, especially to China, reported by the United States Department of Agriculture (USDA) were also bullish.
Net sales of soybeans for the week ended April 14 were up seven per cent from the previous week and 15 per cent from the prior four-week average, the USDA said in a report.
However, spillover weakness from the nearby soy oil market limited gains.
A healthy crop in Paraguay also capped advances, as analysts say the region may be the preferred choice if Brazil chooses to import.
SOYOIL prices settled weaker on Thursday.
SOYMEAL closed stronger on Thursday, as Argentina is the world’s largest exporter of the commodity.
CORN futures closed eight to ten cents per bushel weaker on Thursday, as Brazil and Argentina are offering corn for sale below US prices.
However, US export sales were stronger on the week, which is bullish.
Sales for the week ended April 14 were up six per cent from the previous week and 31 per cent from the prior four-week average, the USDA said in a report on Thursday.
Canada is expected to seed fewer acres of corn this year, which also limited losses.
WHEAT closed eight to nine cents per bushel lower on Thursday, as high global supplies pressured the market.
Ukraine and Russia are both expected to produce a bumper crop, according to reports.
However, stronger export sales limited losses on Thursday.
Wheat sales in the week ended April 14, were up 57 per cent from the prior four-week average, according to USDA data.
– Japan has bought 126,398 metric tonnes of wheat from the US, Canada, and Australia, market watchers say.
– Canadian farmers are expected to seed 23.846 million acres of wheat this year, Statistics Canada said in a report on Friday.
