By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, December 1 – THE ICE Futures Canada canola market finished higher in choppy trading on Thursday, following a rally in Chicago Board of Trade soyoil.
Demand for canola remains strong while exports have picked up a bit, according to a trader in Winnipeg.
Advances in Malaysian palm oil, crude oil and European rapeseed futures were stronger, which was bullish for canola.
Crushing activity on the Prairies remains steady.
However, the Canadian dollar was over half a cent stronger compared to its US counterpart, which made canola less attractive to international buyers.
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Losses in CBOT soybeans undermined canola.
The trader says supplies are abundant despite the fact some canola was left in the fields.
“It does appear we had a very large canola crop out there, even with what’s been left out in the field, we still have some large supplies around,” he noted.
Milling wheat, barley and durum were untraded.
About 29,973 canola contracts traded on Thursday which compares with Wednesday when 44,625 contracts changed hands. Spreading accounted for about 20,456 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade lost two to five cents per bushel on Thursday, as the United States Department of Agriculture (USDA) reported their weekly export sales.
Sales in the week ending November 24 totalled 1.399 million metric tonnes, which was down 26 per cent from the previous week and 17 per cent from the prior four-week average, the USDA said.
Profit-taking after advances earlier in the week pressured the market.
Seeding progress in Brazil added to the downside, the country is expected to produce a larger crop this year.
SOYOIL prices advanced on Thursday, underpinned by an output cut deal inked by OPEC (Organization of the Petroleum Exporting Countries.)
SOYMEAL closed weaker on Thursday.
CORN futures declined five to six cents per bushel on Thursday.
Corn sales in the week ending November 24 totalled 761,600 metric tonnes for 2016/2017, which was down 55 per cent from the previous week and 50 per cent from the prior four-week average, the USDA said.
Market watchers say corn is stuck in a trading range.
WHEAT closed six to nine cents per bushel weaker on Thursday.
Sales in the week ending November 24 totalled 483,500 metric tonnes for delivery in marketing year 2016/2017, which was 32 per cent lower than the previous week and down 16 per cent from the prior four-week average.
Speculative selling was also a feature.
