By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, December 10 – THE ICE Futures Canada canola market finished higher Thursday, tracking large gains in US soyoil.
US soybeans and other nearby commodities were stronger which helped prop up values.
The Canadian dollar was lower relative to its US counterpart which typically makes canola more attractive to domestic crushers and foreign buyers.
Light-farmer selling was supportive along with steady interest from crushers, an analyst said.
However, Malaysian palm oil and European rapeseed futures were both weaker which limited the upside.
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The soybean crop in Brazil is improving with recent rainfall which was also bearish.
Faltering crude oil and an uncertain world economy weighed on investors’ minds, an analyst said.
Spreads were a feature of the day as investors continued to roll out of January contracts in favour of March ones.
Milling wheat, barley and durum were untraded.
Around 29,694 canola contracts were traded on Thursday, which compares with Wednesday when around 19,684 contracts changed hands. Spreading accounted for 21,854 of the contracts traded.
Milling wheat, barley and durum were untraded.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade closed one and a half to four cents per bushel higher on Thursday as strong export numbers from the United States Department of Agriculture (USDA) buoyed prices.
Net soybean sales of 1,453,500 metric tonnes for 2015/2016 were up 66 per cent from the previous week and up 13 per cent from the prior four-week average, the USDA said on Thursday in its export report for the week ended December 3.
However, the swearing in of Argentina’s new president Mauricio Macri limited gains on Thursday, as he is expected to reduce export taxes on the commodity.
SOYOIL prices settled stronger on Thursday due to strong demand.
SOYMEAL closed weaker on Thursday, weighed down by lacklustre sales data.
CORN futures closed three and a half to five and a half cents per bushel stronger on Thursday, also supported by strong export sales.
Net sales of 1,095,300 metric tonnes for 2015/2016 were up noticeably from the previous week and 11 per cent from the prior four-week average, the USDA said on Thursday.
WHEAT closed five to six and a half cents stronger on Thursday as investor short-covering lifted prices from nearby lows, despite a number of bearish factors.
Strength in the nearby corn market also supported prices.
According to the USDA, wheat’s net sales of 225,100 metric tons for delivery in marketing year 2015/2016 were down 43 per cent from the previous week and 45 per cent from the prior four-week average.
– Analysts had expected wheat export sales to fall between 300-500 thousand metric tonnes.
– The USDA left Australia’s wheat production unchanged in its supply and demand report, despite weather issues.
