By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Feb. 14 (CNS Canada) – ICE Futures canola contracts were weaker on Thursday, as losses in Chicago Board of Trade soybeans spilled over to weigh on values.
Poor export demand and bearish technical signals contributed to the declines in canola, with the nearby March contract settling below the psychological C$480 per tonne level.
A weaker tone in the Canadian dollar provided some support.
A lack of significant farmer selling also underpinned the futures.
About 31,369 canola contracts traded on Thursday, which compares with Wednesday when 32,283 contracts changed hands. Spreading accounted for 25,244 of the contracts traded.
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SOYBEAN futures at the Chicago Board of Trade were lower on Thursday, with disappointing export sales data behind some of the weakness.
The United States Department of Agriculture reported net cancellations of 612,000 tonnes of old crop business during the week ended Jan.3, as the agency still works to catch up following the government shutdown. New crop business during that week came in at 1.1 million tonnes.
News that China was in the market buying soybean cargoes from Brazil was also bearish, as newly harvested supplies become more and more available in the South American country.
Trade talks are underway between the U.S. and China in Beijing this week brought some optimism to the soy market, but the two countries have yet to reach a deal. There was talk that the U.S. may extend the March 1 deadline on increasing tariffs on Chinese imports by 60 days.
CORN futures were lower on the day, taking some direction from soybeans and wheat.
The Rosario Grain Exchange in Argentina raised its estimate for that country’s corn crop to 46.5 million tonnes. That was up by 2.5 million from an earlier estimate and 500,000 tonnes above the USDA’s current projection.
WHEAT futures were lower, with the largest losses in Chicago soft white wheat as the spreads between the three U.S. contracts saw some adjustment.
U.S. wheat exports for the week ended January 3 came in below expectations at 131,150 tonnes, accounting for some of the selling pressure.
However, reports that South Korean flour mills had bought a number of cargoes of U.S. wheat were supportive.
