By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Feb. 15 (CNS Canada) – ICE Futures canola contracts were weaker on Friday, finishing right above major chart support as speculators added to their net short positions.
The nearby March contract settled at C$475.80, which was right above major support around C$475.00 per tonne.
Large supplies and a lack of significant buying interest contributed to the declines, with a firmer tone in the Canadian dollar also bearish for the market.
However, soybeans and soyoil were higher at the Chicago Board of Trade, providing some support.
Read Also
ICE canola higher out of long weekend
Glacier FarmMedia – Canola futures on the Intercontinental Exchange were on the rise coming out of the August long weekend due…
The canola market will be closed Monday for Manitoba’s Louis Riel holiday, while markets in the United States will close for Presidents Day. Positioning ahead of the long weekend was a feature.
About 29,228 canola contracts traded on Friday, which compares with Thursday when 31,369 contracts changed hands. Spreading accounted for 24,494 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, amid optimism that the United States and China may be able to reach some kind of trade agreement as negotiations move to Washington D.C. next week.
The National Oilseed Processors Association reported a record crush for the month of January of 171.6 million bushels. Soyoil stocks in the country were up slightly on the month, but about 10 per cent lower than the supplies on hand at the same point the previous year.
Concerns over yield losses in Brazil due to hot and dry conditions during the growing season remained supportive as well, although the weather has shown some improvement as the harvest progresses in the country.
CORN futures held steady, as spillover support from the gains in soybeans was countered by losses in wheat pulling in the opposite direction.
The U.S. Department of Agriculture reported private export sales of 205,744 tonnes of corn to unknown destinations this morning.
WHEAT futures were steady to mostly lower, with Minneapolis spring wheat holding near unchanged and the winter wheats seeing follow-through selling after Thursday’s declines.
Informa Economics lowered their estimate on U.S. spring wheat plantings slightly, but at 13.6 million acres the seeded area would still be up by about a million acres on the year.
European wheat futures were down sharply in overnight trade, and the losses there weighed on the U.S. futures as well.
