North American Grain/Oilseed Review: Canola falls with spec selling

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

Winnipeg, March 16 (CNS Canada) – ICE Futures Canada canola contracts were down sharply on Thursday, falling below major chart support as speculators liquidated long positions.

The May contract dipped below the 200-day moving average, at C$508 per tonne, which encouraged additional technical selling, according to traders.

A lack of aggressive buying interest on the other side contributed to the softer tone, with end-users content to price on a scale-down basis.

However, crush margins improved by about C$6 per tonne, as Chicago Board of Trade soyoil was up slightly on the day and the Canadian dollar weakened.

About 24,922 canola contracts were traded on Thursday, which compares with Wednesday when 21,251 contracts changed hands. Spreading accounted for 14,776 of the contracts traded.

Milling wheat, durum, and barley were all untraded, although wheat prices were revised after the close.

SOYBEAN futures at the Chicago Board of Trade closed about two to three cents per bushel stronger on Thursday, in technical buying after steady declines in previous sessions.

Positioning ahead of a report due out from the United States Department of Agriculture (USDA) at the end of the month was also a feature.

The USDA is set to release its prospective plantings report on March 31. Early estimates feature bearish soybean numbers.

Spill-over support from soyoil was also a feature.

SOYOIL prices closed stronger on Thursday, underpinned by advances in Malaysian palm oil.

SOYMEAL closed stronger on Thursday.

CORN futures closed about two cents per bushel stronger on Thursday, underpinned by strong export sales.

Spill-over support from soybeans added to the upside.

Market watchers say corn is in a downtrend, which could limit the upside in coming sessions.

WHEAT closed mostly unchanged on Thursday.

The market was able to eke out small gains with ideas that the grain is competitive.

Concern about dry weather affecting crops in the US Southern Plains also added strength.
END

Commodity Future Prices

Canola
2017-03-16 13:19
Price Change
May505.80-5.00
Jul510.60-4.90
Nov491.20-4.50
Jan496.50-4.60
Milling Wheat
2017-03-16 14:05
Price Change
May237.001.00
Jul238.001.00
Oct230.001.00
Dec233.001.00
Durum
2017-03-16 14:05
Price Change
May282.000.00
Jul281.000.00
Oct268.000.00
Dec268.000.00
New Barley
2017-03-16 14:05
Price Change
May137.000.00
Jul138.000.00
Oct138.000.00
Dec138.000.00

Prices are in Canadian dollars per metric ton

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