The ICE Futures canola market was weaker on Thursday, as bearish technical signals, losses in outside markets and relatively favourable crop weather all weighed on values.
Recent rains were generally seen as beneficial for crop development, although hail damage and excessive moisture in some areas were being watched. Other areas missed the latest precipitation.
Chicago soyoil, European rapeseed and Malaysian palm oil futures were all down on the day, with that general selling pressure spilling into canola as well.
Bearish chart signals contributed to the declines, as the November contract fell below the psychological C$800 per tonne level. The next major support comes in at around C$770 per tonne, with C$750 a major target to the downside, according to an analyst.
About 18,993 canola contracts traded on Thursday, which compares with Wednesday when 19,712 contracts changed hands. Spreading accounted for 8,660 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Canola Nov 793.30 dn 23.90
Jan 801.70 dn 23.80
Mar 809.00 dn 23.90
May 813.40 dn 24.70
SOYBEAN futures at the Chicago Board of Trade were weaker Thursday, with speculative fund selling a feature as speculators continued to liquidate long positions.
Weekly United States soybean export sales were solid, with just over 200,000 tonnes of old crop business and an additional 254,700 tonnes for delivery in the new crop year.
Favourable growing conditions weighed on values. The latest Midwestern forecasts call for increased chances of rain over the next few weeks with warm temperatures.
CORN was also pressured by the better crop weather, despite recent heat cutting into the yield potential.
Bearish chart signals added to the declines, with speculative selling building on itself.
Weekly U.S. corn export sales topped expectations. The USDA reported 33,900 tonnes of old crop business and 570,200 tonnes of new crop sales.
WHEAT traded to both sides of unchanged, with the bias lower in sympathy with corn and soybeans at the close.
Weekly U.S. wheat export sales of 511,100 tonnes were in line with expectations.
Uncertainty over Ukrainian exports kept some caution in the market, as talks between Russia and Turkey on opening a Black Sea corridor continue to lack any firm details.
One day after cancelling a tender, Egypt was back in the market purchasing 640,000 tonnes for delivery in the September to November timeframe. France and Russia were the major suppliers.
