By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, March 17 (CNS Canada) – ICE Futures Canada canola contracts were down on Friday, posting losses for the seventh-straight session as bearish technical signals had fund traders liquidating long positions and moving to the short side of the market.
Losses in Chicago Board of Trade soybeans and expectations for large South American crops also weighed on canola values, according to participants.
However, canola managed to settle off its lows for the day, as end-user bargain hunting came forward at the lows amid oversold price sentiment. Gains in CBOT soyoil, improving crush margins, and expectations for tightening supplies going forward also provided some support.
About 21,528 canola contracts were traded on Friday, which compares with Thursday when 24,922 contracts changed hands. Spreading accounted for 11,842 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 one to three cents per bushel weaker on Friday, as pressure from South American production continued to have a bearish effect on the market.
Ideas that China has scaled back demand added to the downside.
However, soybean prices have become competitive internationally, due to the market’s sharp decline, which limited the downside.
SOYOIL prices closed stronger on Friday, underpinned by advances in Malaysian palm oil.
SOYMEAL closed weaker on Friday.
CORN futures closed one to two cents per bushel stronger on Friday in trader-positioning ahead of a United States Department of Agriculture report due out at the end of the month.
The USDA is set to release prospective plantings estimates on March 31. Early estimates show an anticipated pull back in corn acres.
Rain in the US Midwest is also reducing the likelihood that producers will be able to get into their fields for early seeding, which added to the advances.
WHEAT closed unchanged to about two cents stronger on Friday, as the commodity has become affordable internationally.
Dry areas in the US Plains is also keeping values supported.