By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, January 22 – THE ICE Futures Canada canola market finished lower on Friday, as strength in the Canadian dollar put prices under pressure.
The stronger Canadian dollar made canola less attractive to out-of-country buyers and also limited spread action, a trader said.
Crush margins have leveled off somewhat while farmer selling has been steady. Some early seeded fields in Brazil are already being harvested.
Losses in Chicago soybeans and market hedges were also bearish for canola.
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However, Malaysian palm oil, Chicago soyoil, European rapeseed futures and crude oil were all stronger which helped to limit the losses.
Forecasts for hot dry weather in Brazil were bullish as certain key areas could use more rain.
Around 16,881 canola contracts were traded on Friday, which compares with Thursday when around 19,022 contracts changed hands. Spreading accounted for about 12,696 of the contracts traded.
Milling wheat, barley and durum were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade closed two to three cents per bushel weaker on Friday as improved growing conditions in South America pressured prices.
Argentina and Brazil are both expected to see rain within ten days, which will give a boost to thirsty crops.
Weaker US export sales also pressured soybean prices.
Net sales for the week ended January 14 totalled 985,100 metric tonnes for 2015/2016, and were down 13 per cent from the previous week and five per cent from the prior four-week average, according to the United States Department of Agriculture (USDA).
However, gains in crude oil futures limited losses.
SOYOIL prices settled stronger on Friday, tracking Malaysian palm oil.
SOYMEAL closed weaker on Friday.
CORN futures closed two to three cents per bushel stronger on Friday, supported by gains in crude oil futures.
Strong export sales also buoyed corn prices on Friday.
Net sales for the week ended January 14 totalled 1,157,700 metric tonnes for 2015/2016, and were up 73 per cent from the previous week and 91 per cent from the prior four-week average, according to the USDA.
WHEAT closed about half a US cent stronger on Friday, supported by export sales.
Net sales for the week ended January 14 totalled 362,000 metric tonnes for delivery in the marketing year 2015/2016.
They were up 32 per cent from the previous week and 33 per cent from the prior four-week average, the USDA said.
Investor short-covering was also a feature on Friday.
– Egypt bought 235 thousand metric tonnes of wheat, according to market watchers.
– Argentina’s agriculture ministry raised their projection for wheat production to 11 million metric tonnes.
