By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, Oct. 22 – ICE Futures Canada canola contracts settled with small losses on Thursday, as an early attempt at breaking above nearby resistance proved short lived and selling came forward to weigh on values.
The nearby November contract made a brief move above the long time resistance level of C$480 per tonne earlier in the day, while the more active January contract broke its upside target of C$485 per tonne. However, those resistance levels proved solid, and the futures backed off of their highs.
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Speculators and farmers were both sellers, with the fund traders holding onto large short positions and farmers busy making deliveries into the commercial pipeline.
A firmer tone in the Canadian dollar and a downturn in the CBOT soy complex were also bearish for canola, according to participants.
About 27,614 canola contracts were traded on Thursday, which compares with Wednesday when 56,383 contracts changed hands.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed six to eight cents per bushel lower on Thursday as forecasts for rain in Brazil and market talk about expanded growing area pressured prices.
Brazil is expected to get beneficial rains in centre-west and centre-south regions over the next 10 to 15 days, according to a US meteorologist.
The forecast is bearish since Brazil’s crops had been at risk due to dryness.
Analysts say the country may also be expanding its growing area this year, which further pressured prices.
Though there has been an uptick in soybean exports compared with earlier this year, the number still falls short from where it sat a year ago, which added to the bearish tone.
SOYOIL prices settled lower on Thursday tracking soybeans.
SOYMEAL closed higher on Thursday, following nearby grain and oilseed markets.
CORN futures closed three to four cents per bushel weaker on Thursday due to disappointing export data from the United States Department of Agriculture.
The USDA released its weekly export report on Thursday, and corn fell short of advance predictions.
Corn exports for delivery in the 2015-16 crop year hit 248,000 metric tonnes, for the week ended October 15.
Analysts had predicted corn exports to reach 400,000 to 800,000 tonnes.
WHEAT closed three to four cents per bushel weaker on Thursday, despite fresh bullish information.
Wheat has been plagued by the same issues for months, namely poor demand due to a lack of competiveness, and a global supply glut.
However, dry weather in competing growing regions like Australia and Ukraine could prop up prices in coming sessions.
– Romania’s wheat production is expected to hit seven million metric tonnes.
– Wheat harvest is ongoing in Australia.
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