By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Nov. 19 – ICE Futures Canada canola contracts were weaker on Thursday, hitting fresh two-month lows as bearish chart signals and a firmer Canadian dollar weighed on values.
Large supplies overhanging the market contributed to the softer tone, with most industry participants anticipating an upward revision to the Statistics Canada production estimate in the December report, according to traders.
However, exporters and domestic crushers were still showing solid demand on any moves lower, helping keep canola range-bound overall.
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Gains in Chicago soybeans and soyoil also helped lend some spillover support to canola.
About 33,447 canola contracts were traded on Thursday, which compares with Wednesday when 36,351 contracts changed hands. Spreading accounted for 19,196 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
SOYBEAN futures at the Chicago Board of Trade settled two to three cents per bushel higher on Thursday, as solid export demand provided support.
Weekly US soybean sales reported by the USDA, at 1.8 million tonnes, topped trade estimates, and were seen as sign of improving offshore buying interest. Soyoil and soymeal sales were also solid.
However, a lack of any fresh bullish production news out of South America did limit the advances. The latest Brazilian forecasts are calling for some much needed rain in a few of the drier areas, which should boost the yield prospects.
SOYOIL settled higher on Thursday.
SOYMEAL futures were also higher on Thursday, following soybeans.
CORN futures in Chicago were up by one to two cents per bushel on Thursday.
Weekly US corn sales, at about 780,000 tonnes, topped market expectations; which was somewhat supportive.
A downward revision to the International Grain Council’s world corn production estimate was also supportive.
However, a slowdown in US ethanol production did temper the gains, as demand for corn from the renewable fuel sector is showing signs of softening.
WHEAT futures in Chicago were up by four to seven cents per bushel on Thursday, supported by the weaker US dollar and improving export demand.
Weekly US wheat export sales came in at over 700,000 tonnes, which far surpassed trade estimates and the previous week’s disappointing levels.
Speculative short-covering contributed to the gains in wheat, as prices recovered from Wednesday’s one month lows.
