North American Grain/Oilseed Review: Canola mixed, corrects lower in front months

WINNIPEG, Jan. 28 (MarketsFarm) – The ICE Futures canola market was mixed on Thursday, with losses in the front months and gains in the new crop contracts as the old/new crop spread saw some readjustment

Chart-based profit-taking accounted for much of the selling pressure in the nearby March contract, as it retreated from 13-year highs to settle just below the psychological C$700 per tonne level.

Declines in Chicago Board of Trade soybeans provided some spillover selling pressure.

However, soyoil futures held onto small gains. Tightening canola supplies and the need to ration demand going forward also remained supportive overall.

About 32,673 canola contracts traded on Thursday, which compares with Wednesday when 28,890 contracts changed hands. Spreading accounted for 17,880 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were weaker on Thursday, as profit-taking following recent gains came forward to weigh on prices.

Weekly United States old crop soybean export sales of 466,000 tonnes came in below trade estimates. However, new crop business was well ahead of expectations, at about 1.5 million tonnes, according to the latest U.S. Department of Agriculture report.

Weather conditions in South America were somewhat mixed for the market. While rains in Brazil were alleviating dryness concerns, the moisture was coming too late in some areas and the possibility of flooding and harvest delays provided support.

CORN held onto small gains in the front months on the back of solid export demand.

Weekly U.S. corn export sales of 1.8 million tonnes topped trade guesses, with the USDA also reporting an additional 1.7 million tonne sale to China this morning.

Corn futures touched fresh seven-and-a-half year highs, but ran into some resistance to the upside.

WHEAT futures were lower, as the market continued to back away from recent gains.

Weekly U.S. wheat export sales of 380,500 tonnes for delivery during the current marketing year and an additional 216,000 tonnes of new crop business were in line with market expectations.

The Western Producer

Tags: canola, North American Grain/Oilseed Review, ICE Futures