By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, March 15 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Thursday, as gains in the Chicago Board of Trade soy complex and weakness in the Canadian dollar provided support.
The Canadian dollar fell sharply relative to its U.S. counterpart, losing roughly half a cent to trade at its weakest levels in nine months. The weaker currency underpins crush margins and makes exports more attractive to international buyers.
Supportive technical signals added to the firmer tone in canola, with fund traders reportedly adding to long positions.
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However, ample old crop canola supplies and expectations for large seeded acres this spring tempered the upside. Ideas that the dryness concerns in Argentina have been priced into the market for the time being also put some pressure on values.
About 17,706 canola contracts traded on Thursday, which compares with Wednesday when 12,576 contracts changed hands. Spreading accounted for 8,294 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade moved higher on Thursday, as weekly U.S. soybean export sales of about 1.3 million tonnes came in at the top end of trade guesses.
Solid monthly crush data was also supportive, with the National Oilseed Processors Association reporting a February crush of 153.7 million bushels. That came in well above expectations, and marks a new record for the month. However, the resulting increase in soyoil and meal stocks did limit the advances.
Expectations for a sizeable increase in U.S. soybean acres this spring also weighed on values.
CORN futures settled with small losses, despite favourable export data. Weekly U.S. corn export sales of 2.5 million tonnes were well above trade estimates.
Expectations that the increased U.S. soybean acres will come at the expense of corn were also supportive.
However, corn ran into upside resistance and retreated below unchanged. Large old crop corn supplies continue to overhang the market, with any gains bringing in additional selling pressure.
All three U.S. WHEAT markets were lower on the day. Weekly U.S. wheat export sales were disappointing, at only about 200,000 tonnes for old and new crop combined. Large world wheat supplies also weighed on values.
However, the ongoing dryness concerns across the Southern Plains provided some underlying support.
