North American grain/oilseed review: Canola ends day lower

By Jade Markus and Phil Franz-Warkentin, Commodity News Service Canada

Winnipeg, May 18 (CNS Canada) – ICE Futures Canada canola closed weaker on Thursday, tracking sharp losses in the US soy complex.

Chicago Board of Trade soybeans, soymeal and soy oil all dropped on Thursday, pressured by fund-selling.

Canola was feeling the bearish effects of forecasts for favourable seeding weather in Western Canada, which will allow producers to plant what is expected to be record acres.

Around 16,955 canola contracts traded on Thursday, which compares with Wednesday when around 16,605 contracts changed hands. Spreading accounted for 7,100 of the contracts traded.

Milling wheat, durum and barley futures were all untraded and unchanged.

Settlement prices are in Canadian dollars per metric tonne.

SOYBEAN futures at the Chicago Board of Trade were sharply lower on Thursday, losing 20 to 31 cents per bushel as some sell-stops were hit on the way down.

A corruption scandal in Brazil triggered a selloff in the country’s currency. The weaker Brazilian real made soybean exports out of the country more attractive to international buyers, at the expense of US business, according to market analysts.

Weekly US soybean export sales of just under 400,000 tonnes (old and new crop combined) were in line with trade estimates.

SOYOIL futures were sharply lower on Thursday.

SOYMEAL futures were weaker on Thursday.

CORN futures in Chicago were down by four to five cents per bushel on Thursday, as the large losses in soybeans and strengthening US dollar index accounted for some spillover selling pressure.

Weekly US corn export sales of about 870,000 tonnes (old and new crop combined) were in line with market expectations.

Forecasts calling for wet weather in parts of the Midwest over the next week were somewhat supportive, as the moisture may delay seeding of the final portion of this year’s US corn crop.

WHEAT futures in Chicago settled near unchanged on Thursday, although the bias was lower in the most active months.
The losses in soybeans and corn put some spillover pressure on wheat throughout the session.

However, solid export demand kept wheat well supported as Egypt included some US wheat in its latest purchase.

Weekly US wheat export sales were also much better than anticipated, with the USDA reporting old crop sales of about 250,000 tonnes and new crop sales of just under 400,000 tonnes.

Commodity Future Prices

Canola
updated 2017-05-18 13:19
Price Change
Jul521.30-6.40
Nov498.50-7.40
Jan503.30-7.50
Mar507.40-7.70

Prices are in Canadian dollars per metric ton

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