By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Jan. 7 (MarketsFarm) – The ICE Futures canola market recovered from early profit-taking losses to hit new contract highs in the front months on Thursday. However, the more deferred positions were still lower at the close.
Losses in Chicago Board of Trade soybeans put some spillover pressure on the canola market throughout the session, but early selling pressure subsided in the Canadian oilseed as the underlying fundamentals remain supportive.
Concerns over tightening supplies and the need to ration demand going forward were behind much of the eventual strength in canola.
About 37,391 canola contracts traded on Thursday, which compares with Wednesday when 24,380 contracts changed hands. Spreading accounted for 28,558 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Thursday, seeing a profit-taking correction after hitting their highest levels in six years the previous session.
Grain inspectors at ports in Argentina had been on strike for the past month, but finally reached a deal with export companies which should allow shipments of soybeans and other commodities out of the country to get back to normal. Forecasts calling for more rain in Argentina were also bearish.
Weekly United States soybean export sales were disappointing, coming in well below trade estimates at only 116,000 tonnes.
However, the U.S. Department of Agriculture did announce additional private sales to unknown destinations of 213,000 tonnes of soybeans for delivery during the current marketing year and 130,000 tonnes for next year.
CORN was also pressured by the latest news out of Argentina, although the declines were much more subdued.
Weekly U.S. corn export sales of about 750,000 tonnes were at the lower end of expectations.
WHEAT futures were lower on the day, as prices continued to back away from nearby highs and a firmer tone in the U.S. dollar cut into some export demand.
Recent moisture across the U.S. Plains should help the winter wheat crops there, although the longer range forecasts look dry.
Weekly U.S. wheat export sales of 281,000 tonnes were in line with expectations.