By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, November 13 – THE ICE Futures Canada canola market finished weaker in thin-volume trading Friday, following losses in the vegetable oil market.
CBOT soybeans were also weaker which added to the losses. Argentina has indicated it could lower its export tax which would almost certainly result in large amounts of soybeans being dumped onto the market.
The near-term outlook is bearish, according to an analyst.
“By the end of this month I think you’re going to see canola lose C$10-15 just for the fact that the funds are going to come in here” he said, adding it would be very tough to move above C$480.
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However, the Canadian dollar was slightly weaker relative to its US counterpart which was supportive for canola.
Slow farmer selling mixed with steady Chinese buying helped prop up values, the analyst said.
Milling wheat, barley and durum were all untraded.
A total of 14,076 canola contracts were traded on Friday,
which compares with Thursday when 29,380 contracts changed hands.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade closed five to ten cents per bushel weaker Friday as South America started its soybean growing season.
Not only will South America’s crops add to global supplies, which is bearish, but they also compete against US oilseeds.
A stronger US dollar added to the bearish tone, as it makes the country’s commodities less affordable.
However, export numbers from the United States Department of Agriculture (USDA) capped some losses.
Net sales of 1,297,000 metric tonnes for 2015/2016 were up 98 per cent from the previous week, but down 14 per cent from the prior four-week average, the USDA said in its export sale highlights report for the week ended November 5.
SOYOIL prices settled weaker on Friday, tracking Malaysian palm oil futures.
SOYMEAL closed lower on Friday following neighbouring grain and oilseed markets.
CORN futures closed around four cents per bushel weaker on Friday as a strong US dollar pressured the commodity, despite better-than-expected export numbers from the USDA.
US corn sales hit 618,600 metric tonnes for 2015/2016, which is an 11 per cent increase from the previous week, and 17 per cent more then the prior 4-week average, according to the USDA.
However, those figures were still behind year-ago numbers.
WHEAT closed one to two cents per bushel lower on Friday as a stronger US dollar pressured the commodity.
According to the USDA, net sales of wheat hit 226,670 metric tonnes for delivery in the marketing year 2015/2016.
Those figures were up from the previous week, but down 38 per cent from the prior four-week average.
– Farmers don’t want to sell at current prices, analysts say.
– South Korea is looking to buy 34,900 tonnes of US wheat for March/April delivery.
