By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, March 3 – THE ICE Futures Canada canola market ended relatively steady on Thursday as values consolidated following Wednesday’s volatility.
The market was lower for much of the morning, however prices eventually climbed due to gains in outside markets and ideas the selling had been overdone.
The soy complex on the Chicago Board of Trade was higher which helped to underpin the market.
Strength in crude oil was supportive along with end-user bargain hunting and steady commercial demand.
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However, European rapeseed futures were lower which capped the gains.
The Canadian dollar was higher which cut into crush margins and made canola less enticing to out-of-country buyers.
“I don’t think the crush is being too aggressive on the buy side,” an analyst noted.
Large supplies of South American soybeans are about to hit the market too, which was bearish for canola.
Around 45,007 canola contracts were traded on Thursday, which compares with Wednesday when around 20,471 contracts changed hands. Spreading accounted for about 6,228 of the contracts traded.
Milling wheat and durum were both untraded while 25 barley contracts changed hands.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed two to four cents per bushel stronger on Thursday, supported by bargain buying.
Soybeans held above chart support on Wednesday, which also buoyed prices.
However the ongoing Brazilian harvest kept a lid on gains.
SOYOIL prices settled stronger on Thursday, tracking Malaysian palm oil.
SOYMEAL closed higher on Thursday, tracking nearby grain and oilseed markets.
CORN futures closed one cent per bushel lower to two cents per bushel higher on Thursday, gathering support from the nearby wheat market and investor short-covering.
However, increased farmer selling limited gains.
Analysts expect the United States Department of Agriculture will raise its ending stocks estimates next week, which could be bearish for prices in coming sessions.
The March contract was slightly weaker on Thursday as it nears expiry.
WHEAT closed nine to ten cents per bushel stronger on Thursday, supported by warm weather in the US.
Higher temperatures have pushed the country’s crops out of dormancy. If temperatures drop back down it could make them susceptible to frost related damage.
Investor short-covering was also a feature on Thursday.
– Morocco’s wheat crop may fall more than 50 per cent from last year, due to below-average precipitation, according to reports.
– Russian wheat exports are expected to increase from 23.5 million metric tonnes to 24 million metric tonnes.
