By Dave Sims, Commodity News Service Canada
Winnipeg, June 7 (CNS Canada) – Canola contracts on the ICE Futures Canada platform recorded losses Thursday, following a downturn in soybeans on the Chicago Board of Trade.
Losses in vegetable oil markets also weighed on the canola.
The ongoing trade saga between the United States and China cast uncertainty in the market, which spooked some investors.
Large funds have been liquidating long positions this week, which was bearish.
However, weakness in the Canadian dollar underpinned canola.
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The front-month July contract received support at the C$520 per tonne level.
Around 23,318 canola contracts were traded on Thursday, which compares with Wednesday when around 19,843 contracts changed hands. Spreading accounted for 13,778 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures recorded sharp losses on Thursday, due to disappointing weekly export sales and uncertainty about trade with China.
Weekly soybean exports in the United States came in at 165,000 tonnes, which was well below the 200,000 to 500,000 tonnes analysts were expecting.
The soybean basis in the U.S. remains relatively steady.
Corn futures finished weaker, tracking weakness in ethanol futures.
A lack of fresh news about the state of the U.S. crop and spillover losses from soybeans weighed on corn.
Rains are expected in some areas of the eastern Corn Belt, which should help the crop along.
Chicago wheat futures continued to rise Thursday, with reports of excess dryness in Russian and Ukrainian wheat fields, providing the path of least resistance.
Weakness in the U.S. dollar was supportive for wheat futures.
A lack of rain in the U.S. Plains is helping move the harvest along quicker than expected.
