By Jade Markus and Dave Sims, Commodity News Service Canada
Winnipeg, May 12 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Thursday, pressured by spillover losses in Chicago Board of Trade soy oil and soybeans.
CBOT soybeans were weaker on Thursday after export data from the United States Department of Agriculture.
Soy’s export sales fell 74 per cent from last week’s levels, which is bearish.
Declines in Malaysian palm oil further pressured the canola market.
The Canadian dollar gained ground against its US counterpart on Thursday, supported by US crude supply data.
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Gains in the loonie have a bearish effect on canola as it makes the commodity less affordable to foreign buyers.
Traders say farmers have increased selling due to higher prices, which added to the declines.
Beneficial rains in parts of Manitoba and Saskatchewan eased some trader-concerns, but dryness in Alberta continues to underpin the market, which limited losses.
About 37,866 canola contracts were traded on Thursday, which compares with Wednesday when 48,339 contracts changed hands.
Milling wheat was revised higher after the close, while durum and barley were untraded and unchanged.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures continued to correct lower Thursday, falling 4 to 7 cents per bushel, on the heels of a massive rally earlier in the week.
Some traders took light profits, according to a report.
The Rosario grain exchange in Argentina slashed its 2015/16 soybean crop projection to 55 million tonnes. That is 4 million tonnes less than its initial projection.
Soyoil declined 77 to 79 points as it continued to drop from the highs recorded earlier this week.
SOYMEAL futures finished higher with spreading from soyoil a feature.
Corn futures on the Chicago Board of Trade finished 10 to 11 cents per bushel higher Thursday after a new report from the USDA showed a 44 percent increase in exports for the week.
Dry conditions in Brazil continue to stress production efforts, an analyst said.
However, strength in the Brazilian real made US supplies more attractive on the international market.
Wheat futures on the Chicago Board of Trade chalked up gains Thursday, advancing 7 to 9 cents per bushel, on fresh signs of demand from overseas.
French wheat stockpiles could be 29 percent lower than last month due to rising exports, according to a report.
The USDA pegged the Ukraine wheat harvest at 59 million tonnes with exports expected to hit 32 million tonnes.
– Wheat exports from Bulgaria rose 12 per cent between July of 2015 to February of this year.
– The European Union awarded new export licenses for nearly 630,000 tonnes of wheat this week. That brings the yearly total to 26.6 million tonnes, according to a report.
