By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, Nov. 5 – ICE Futures Canada canola contracts were down sharply on Thursday, taking back all of Wednesday’s gains as a downturn in the CBOT soy complex weighed on prices.
Wednesday’s rally brought in some fresh farmer selling as well, which contributed to today’s softer tone in canola, according to participants.
Speculative selling was another feature, as prices fell to the low end of their well established trading range.
However, scale down end user demand provided support, while recent weakness in the Canadian dollar also underpinned the futures.
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Chart support held to the downside, with canola still stuck within a sideways trading range despite the recent volatility.
About 14,123 canola contracts were traded on Thursday, which compares with Wednesday when 24,296 contracts changed hands. Spreading accounted for 5,036 of the contracts traded.
Milling wheat and durum were both untraded, while barley was steady to higher in light activity.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 474.50 dn 6.90
Mar 479.80 dn 6.40
May 481.90 dn 6.30
Milling Wheat Dec 240.00 unch
Mar 244.00 unch
Durum Dec 315.00 unch
Mar 320.00 unch
Barley Dec 188.50 up 3.50
Mar 187.00 unch
SOYBEAN futures at the Chicago Board of Trade closed 14 to 20 cents per bushel lower Thursday as the United States Department of Agriculture (USDA) released its weekly export figures, which fell far short of analyst expectations.
Average analyst guesses were well over one-million tonnes.
Soybean sales for the week ended October 29 totalled 656,500 metric tonnes, according to the USDA.
Market watchers say the potential for a strong Brazilian crop remains likely, which added to the bearish tone.
SOYOIL prices settled weaker on Thursday tracking Malaysian palm oil.
SOYMEAL closed lower on Thursday, following nearby grain and oilseed markets.
CORN futures closed four to six cents per bushel weaker on Thursday as the US dollar gained some ground and crude oil prices fell.
A stronger US dollar makes the country’s corn less affordable to prospective buyers, which is bearish.
Weakness in crude oil prices further pressured prices, as lower returns in energy sectors make it less appealing for processors to turn into ethanol.
WHEAT closed unchanged to four cents per bushel weaker on Thursday, also pressured by the USDA export report.
Wheat sales for the week ended October 29 totalled 105,600, less than half of the low end of analyst expectations.
US wheat isn’t competitively priced compared with other countries, which is bearish.
– Beneficial rains continued in US winter wheat growing areas.
– Iraq canceled a tender for 50 thousand metric tonnes of wheat, analysts say.
