By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sept. 9 (MarketsFarm) – The ICE Futures canola market dropped sharply lower on Thursday, with long liquidation a feature as the market tested nearby chart support.
Losses in the Chicago Board of Trade soy complex and a firmer tone in the Canadian dollar contributed to the declines in canola.
The larger-than-expected ending stocks reported by Statistics Canada on Wednesday remained a bearish influence in the background, although the poor new crop production prospects remained supportive on the other side.
About 40,931 canola contracts traded on Thursday, which compares with Wednesday when 25,651 contracts changed hands. Spreading was a feature, accounting for 32,618 of the contracts traded.
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SOYBEAN futures at the Chicago Board of Trade were weaker on Thursday, with positioning ahead of Friday’s monthly United States Department of Agriculture supply/demand report accounting for much of the activity. Fund traders on the long side of the market were liquidating some of those positions. Bearish technical signals added to the declines, with some stops hit on the way down.
General pre-report expectations are for an increase in average soybean yields compared to earlier estimates, with a larger acreage base also likely after some planted area numbers were mistakenly released early.
The USDA reported private export sales of 132,000 tonnes of soybeans to China, providing some support. Weekly export sales data is delayed to Friday.
Trucking disruptions in Brazil were being followed closely, with dozens of blockades around the country slowing movement from the countryside to the ports.
CORN held near unchanged for most of the session, with the bias to the downside at the close as traders adjusted positions ahead of the USDA report.
Trade expectations are for a slight uptick in U.S. corn yields and acres compared to earlier estimates.
Meanwhile, Brazil’s CONAB lowered their estimate on the size of that country’s second corn crop
U.S. ethanol production was up slightly in the latest weekly report.
WHEAT was lower, with Wednesday’s larger-than-expected Canadian stocks data a bearish influence for the second session.
Speculative selling was a feature as a move below some key chart support levels added to the softer tone in wheat.
