By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Nov. 19 (MarketsFarm) – The ICE Futures canola market was mixed on Thursday, with new multi-year highs in the front months and losses in the more deferred positions.
Gains in Chicago Board of Trade soyoil provided some spillover support for canola, although soybeans settled near unchanged.
End users were being forced to raise their bids in the cash market in order to entice farmer sales, accounting for the gains in the front months, according to a broker. The move to an inverse in the market was a sign of the nearby demand, but the trader was uncertain how long the front months would be able to maintain a premium to the deferred contracts.
Ideas the market was looking overbought tempered the upside to some extent.
About 26,584 canola contracts traded on Thursday, which compares with Wednesday when 30,834 contracts changed hands. Spreading accounted for 20,148 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade settled with small gains in the most active months on Thursday, after trading to both sides of unchanged as the market consolidated near its recently hit highs.
Much needed rains in South America put some pressure on values. However, there is still plenty of uncertainty over production in the continent and more rain will be needed to alleviate the dryness concerns.
Weekly United States soybean export sales of just under 1.4 million tonnes were above trade expectations, but still the smallest weekly total of the marketing year to date. China was the biggest customer, accounting for about a million tonnes of the business.
CORN futures settled with small losses, as spillover from the firm tone in soybeans was countered by losses in wheat.
Weekly U.S. corn export sales came in at 1.1 million tonnes. That was up 11 per cent from the previous week and at the high end of pre-report expectations.
WHEAT futures were lower on the day, holding rangebound overall.
Weekly U.S. wheat export sales of 192,400 tonnes set a new marketing year low, and came in well below trade expectations.
Strength in the U.S. dollar also put some pressure on wheat futures.
On the other side, expectations that Russia will implement measures to slow exports provided some support.
Futures Prices as of November 19, 2020
Prices are in Canadian dollars per metric ton