By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, October 29 – THE ICE Futures Canada canola market finished lower on choppy trading Thursday, following losses in US soybeans and soyoil.
The loonie was slightly stronger relative to its US counterpart which made canola less attractive to foreign buyers.
Traders expect the next survey from Statistics Canada to show larger canola supplies than initially reported.
Rain in Brazil has helped replenish parched soybean fields that were facing drought-stress.
A lack of fresh news has also kept canola range-bound, said a trader.
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“It’s stuck in neutral. The soybeans are trading at US$8.75 while the Canadian dollar has been up for two days. Canola is strictly a follower right now,” he said.
However, Malaysian palm oil was higher which helped limit the losses while a lack of spec selling was also supportive.
Milling wheat, barley and durum were all untraded.
A total of 23,766 canola contracts were traded on Thursday, which compares with Wednesday when 24,527 contracts changed hands.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade were down by 2 to 3 cents per bushel on Thursday, as bearish technical signals and better weather in Brazil weighed on prices.
Some of the drier areas of Brazil are now expected to see some much needed rain over the next ten days, which will help the recently planted soybean crops there, according to analysts.
The US soybean harvest is also in its final stages, and the increased availability of newly harvested supplies contributed to the softer tone, according to participants.
However, solid weekly export sales of over 2.0 million tonnes provided underlying support, helping temper the declines.
SOYOIL settled lower on Thursday, as the soyoil/soymeal spreads saw some readjustment after moving the other way on Wednesday. The losses came despite solid weekly export sales of 82,100 tonnes.
SOYMEAL futures were higher on Thursday.
CORN futures in Chicago were up by three to four cents per bushel on Thursday, boosted by solid weekly export demand.
The USDA reported weekly US corn export sales of 708,800 tonnes, which was well above trade estimates and one of the best weeks of the marketing year to date.
Gains in wheat lent some spill-over support to corn as well, according to participants.
However, the large US crop did limit the advances, keeping corn well within its recent trading range.
WHEAT futures in Chicago were up by five to nine cents per bushel on Thursday, as improving export demand and persistent weather concerns in some wheat growing regions of the world provided support.
Weekly US wheat export sales came in at the high end of trade expectations, at 550,300 tonnes. While US wheat exports remain relatively soft overall, they are now running ahead of the pace needed to meet the USDA target for the marketing year.
Dryness in Australia and the Black Sea region remained supportive for wheat as well, according to traders.
However, forecasts calling for more moisture in the US Plains did limit the upside, as the precipitation will help the winter wheat crops there.
– Egypt bought 240,000 tonnes of wheat in its latest tender, with France, Poland, and Romania accounting for all of the business.
– The International Grains Council has lowered its world wheat production estimate by one million tonnes, and now pegs the 2015/16 global crop at 726 million tonnes.
