Glacier FarmMedia — The ICE Futures canola market was weaker on Thursday, backing away from nearby highs after running into resistance.
- The March contract touched fresh seven-week highs in overnight trade but was unable to hold onto those gains. The settlement below C$650 per tonne was bearish from a chart standpoint, said an analyst.
- Chicago soyoil also retreated from earlier advances, accounting for some of the spillover selling pressure in the Canadian oilseed.
- Gains in crude oil remained supportive for the grains and oilseeds.
- Optimism over increased export movement to China continued to underpin the canola market, although old crop supplies remain burdensome.
- The Canadian dollar was firm on the day, hitting fresh 16-month highs relative to its United States counterpart. The strong currency cuts into crush margins and makes exports less attractive for international buyers.
- There were 30,446 contracts traded on Thursday, which compares with Wednesday when 45,542 contracts changed hands. Intermonth spreading accounted for most of the trade volumes.
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ICE canola turning lower at midday Thursday
Glacier FarmMedia — ICE Futures canola contracts were weaker at midday Thursday, backing away from overnight gains. The March contract…
SOYBEAN futures at the Chicago Board of Trade turned lower after overnight gains, as soft weekly exports and the large Brazilian crop projections weighed on values.
- Weekly U.S. soybean export sales of 819,000 tonnes for delivery during the current marketing year were down 67 per cent from the previous week and the lowest level in 10 weeks.
- The March contract briefly traded above its 100-day moving average in overnight trade before speculative selling came forward to take values lower.
- Expectations for a record-large Brazilian crop weighed on values, as the harvest progresses in the South American country.
CORN futures traded to both sides of unchanged, holding onto small gains at the close.
- The USDA reported weekly U.S. corn export sales of 1.65 million tonnes, which was down 59 per cent from the previous week, but in line with trade estimates.
- Strength in crude oil provided some underlying support for the ethanol-linked grain.
WHEAT futures were underpinned by broad weakness in the U.S. dollar internationally.
- U.S. wheat exports dipped 10 per cent on the week, coming in at 558,200 tonnes. However, that was still at the higher end of trade expectations.
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