By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Nov. 23 (CNS Canada) – ICE Futures canola contracts were narrowly mixed at Friday’s close, after posting losses for most of the session.
Bearish technical signals, ample supplies in the commercial pipeline, losses in crude oil and spillover from the declines in Chicago Board of Trade soybeans all weighed on values, according to participants.
However, canola had already moved lower on Thursday when markets in the United States were closed for Thanksgiving, and oversold price sentiment eventually provided some support.
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About 13,208 canola contracts traded, which compares with Thursday when 6,266 contracts changed hands. Spreading accounted for 9,222 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade settled with small losses on Friday in a holiday-shortened session, as the market closed early due to Thanksgiving.
Weekly United States soybean export sales of about 680,000 tonnes were the highest in nearly two months and in line with trade estimates. However, the numbers included cancellations of 200,000 tonnes of previously reported business.
In a separate report the U.S. Department of Agriculture did announce a private sale of 120,000 tonnes of soybeans to unknown destinations.
Positioning ahead of next week’s G20 meeting was a feature, as traders remain uncertain whether or not China and the U.S. will be able to make any headway on resolving their trade dispute.
CORN futures were slightly lower on the day. Private production estimates out of Brazil are generally coming in above the USDA’s forecast, putting some pressure on values.
Weekly U.S. corn export sales came in at 877,000 tonnes – which was at the higher end of market expectations, but still off the week ago level.
The USDA did announce a separate private sale of 132,000 tonnes to South Korea.
WHEAT futures were mixed on the day, with the bias lower in the most active contracts.
Weekly U.S. wheat export sales of 330,000 tonnes were at the lower end of trade estimates, but there was some optimism that the export numbers should improve in subsequent reports.
Egypt’s state grain buyer bought 120,000 tonnes of U.S. wheat in its latest tender, which provided some support for the futures as U.S. wheat finally looks more competitive on the global market. Egypt also bought 60,000 tonnes from Russia and another 60,000 tonne cargo from Romania.
