Glacier FarmMedia — The ICE Futures canola market settled with small losses, as spillover from declines in the Chicago soy complex countered the supportive influence of a weaker Canadian dollar.
- The March contract traded above C$650 per tonne for the sixth-straight session on Friday, but once again ran into resistance at that chart point to settle slightly lower.
- Losses in the Chicago soy complex accounted for much of the spillover selling pressure in canola. European rapeseed and Malaysian palm oil futures were also weaker.
- The Canadian dollar backed away from the 16-month highs relative to its United States counterpart hit yesterday, losing roughly half a cent. The softer currency underpinned crush margins and made exports more attractive to international buyers.
- Canada exported 241,100 tonnes of canola during the week ended Jan. 19, which was down by 15 per cent from the previous week, reported the Canadian Grain Commission. Crop year-to-date exports of 3.45 million tonnes were 35 per cent behind the year-ago pace.
- There were 53,441 contracts traded on Friday, which compares with Thursday when 30,446 contracts changed hands. Spreading was a feature, accounting for 39,432 of the contracts traded.
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SOYBEAN futures at the Chicago Board of Trade were weaker on Friday, as a rally in the United States dollar index and the advancing Brazilian harvest weighed on prices.
- The U.S. dollar recovered off the four-year lows hit earlier in the week, as currency markets reacted to the appointment of former Federal Reserve governor Kevin Warsh as the next Fed chair, replacing Jerome Powell.
- Expectations for a record-large Brazilian crop remained a bearish influence, as the harvest progresses in the South American country. Conditions were also reportedly improving for developing crops in Argentina.
- The Buenos Aires Grain Exchange said recent rains had helped moisture conditions for soybeans and corn but noted that more precipitation would be needed in the upcoming weeks.
CORN futures were also pressured lower by the rising U.S. dollar.
- Month-end positioning was another feature in the corn market.
WHEAT futures were mostly lower, as the strength in the U.S. dollar makes exports less attractive for international buyers.
- Forecasts calling for extreme cold temperatures in some wheat growing regions of Ukraine and Russia provided support.
- Traders were also still calculating the damage caused to U.S. winter wheat from last weekend’s severe storm.
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