The ICE Futures canola market was weaker on Friday, retreating from earlier gains as bearish chart signals kept the momentum to the downside ahead of the weekend.
While strength in European rapeseed and Malaysian palm oil futures provided some support, a downturn in Chicago soyoil spilled over to weigh on the canola market.
Wide crush margins, and solid demand from both exporters and domestic processors, helped temper the losses to some extent. Canola is also looking oversold from a technical standpoint, with the January contract nearing major support at C$800 per tonne.
About 19,449 canola contracts traded on Friday, which compares with Thursday when 16,525 contracts changed hands. Spreading accounted for 11,716 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade managed to settle with small gains in Friday’s holiday-shortened session. Markets in the United States were closed Thursday for Thanksgiving and only open for reduced hours on Friday.
Weekly U.S. soybean export sales of 690,000 tonnes were the lowest level in nine weeks, but meal sales were strong at 516,000 tonnes. Soyoil sales came in at a net negative 97 tonnes, as cancellations outpaced any fresh business.
Concerns over mounting COVID-19 cases in China and the impact the country’s strict lockdown measures will have on demand put some pressure on prices.
Nearby weather conditions look relatively favourable for soybean crops in Brazil, but the forecasts have turned hotter and drier once again for Argentina.
CORN was stronger in thin and choppy trade.
Weekly U.S. corn export sales of 1.85 million tonnes were at the lower end of expectations.
A downturn in crude oil put some pressure on the ethanol-linked grain.
WHEAT was lower across the board, with the largest losses in Chicago soft wheat.
Weekly U.S. wheat export sales were the highest in four weeks, coming in at just over half a million tonnes. However, hard red spring wheat made up the bulk of the total, which provided some support to the Minneapolis futures.
The ongoing conflict in Ukraine remained at the forefront of the wheat market, as the country is usually a major wheat exporter.
Iraq was in the market tendering for milling wheat, with Australia and Canada making up 200,000 and 100,000 tonnes of the business respectively.
