By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Dec. 23 (MarketsFarm) – The ICE Futures canola market was weaker on Thursday, as speculative long liquidation ahead of Christmas weighed on values.
North American markets will be closed Friday, Dec. 24, for Christmas, with the Canadian ICE canola market remaining closed through Monday, Dec. 27, for Boxing Day. Futures in the United States will trade their usual hours on Monday and that extra-long Canadian holiday likely contributed to selling pressure in canola.
The losses in canola came despite strength in outside markets, with Chicago Board of Trade soyoil, Malaysian palm oil, and European rapeseed futures all higher.
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Ideas that canola is looking overbought at current levels also weighed on values, despite the ongoing concerns over tight supplies.
About 22,980 canola contracts traded on Thursday, which compares with Wednesday when 21,190 contracts changed hands. Spreading accounted for 15,986 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade kept within a narrow range on Thursday, holding onto small gains at the close as participants squared positions ahead of the holidays.
Supportive technical signals contributed to the gains in soybeans, as prices held above some key technical levels.
Weather concerns out of South America were also supportive, as forecasts calling for hot and dry conditions could cut into the yield prospects in Argentina and southern Brazil.
Weekly United States soybean export sales of just over 800,000 tonnes marked the lowest level of the marketing year to date, tempering the upside.
CORN also held above some key technical levels, stabilizing above US$6.00 per bushel in the front months.
Weekly U.S. corn export sales, at 982,900 tonnes, were down 50 per cent from the previous week, but in line with trade expectations.
Weekly U.S. ethanol production was down slightly on the week, with stocks of the renewable fuel also tightening.
WHEAT was higher, seeing a continuation of Wednesday’s gains.
Weekly U.S. wheat export sales came in at 425,000 tonnes, which was down 35 per cent from the previous week, but at the higher end of expectations.
The southern U.S. Plains remain on the dry side, keeping some weather premiums in the market heading into the holidays.
