Winnipeg Commodity Exchange canola futures settled lower on Thursday, but the market was firm relative to sharp losses experienced in the allied Chicago Board of Trade soy complex, traders said. "Nobody wants to sell our market because they're already short," a trader said.
Canola ended $1.60 to $6.10 per tonne lower, with March down $5.90 at $364.90, May down $2.80 at $376.20, July down $2.60 at $385.40 and November down $2.50 at $388.20. A lack of farmer and fund selling amid overall thin volumes kept the market relatively stable compared with CBOT soy, traders said. Farmers have stepped back from the market because of recent declines, and funds appear to have finished their recent sell-off, traders said.
"They've pared down their position pretty good," a trader said. Support also came from exporter buying related to a recent cargo bought by China. There were also unconfirmed rumours of new business to Mexico. US soy values were pressured by fund selling and weakness in China's stock market, with May soybeans ending 25-1/2 cents per bushel lower at $7.62 and May soybean oil down 0.75 cent per lb to 30.01 cents.
An estimated 116 March/May canola spreads traded from $10.10 to $11.30, with 371 May/July from $8.80 to $9.80 and 223 July/November from $1 to $3.40. Volume was estimated at 4,738 contracts, down from a total of 8,197 on Wednesday. Feedgrain futures were lower in sympathy with US corn losses, with May barley down $1.40 at $185.50 and October down $2.80 at $147.
Barley volume was estimated at 109 contracts, down from 335 on Wednesday. March feed wheat was up $1 per tonne at $161 and May was down $1 at $164. Volume was estimated at 71 contracts, down from 399 on Wednesday.
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