WINNIPEG, Manitoba--ICE canola futures turned lower at midsession Friday, as the effects of Thursday's reports from the U.S. Department of Agriculture wore off, according to a trader.
The numbers from the USDA were only significant because they were different from what the markets expected, according to the trader.
"In the end, the situation didn't really change that much," the trader noted.
The trader pointed to rains this week in Argentina which have been providing some relief from the country's severe drought.
"Surprisingly it's not putting a lot of pressure on the soybeans," the trader said, adding the oilseed markets remained rangebound.
The trader noted the declines in canola exports, with the Canadian Grain Commission reporting that more than 120,000 tons left the country during the week ended Jan. 8. Although the pace of exports continued to be ahead of those a year ago, the trader expects ending stocks to be somewhat larger than previously anticipated.
Declines in Chicago soyoil and soymeal weighed on canola values, with more pressure from losses in European rapeseed and Malaysian palm oil. Increases in Chicago soybeans and global crude oil prices helped to offset further pull backs in vegetable oils.
The Canadian dollar was lower on Friday, with the loonie at 74.55 U.S. cents, compared to Thursday's close of 74.75 U.S. cents.
About 25,200 canola contracts were traded as of 11:41 a.m. ET.
Prices in Canadian dollars per metric ton at 11:41 a.m. ET:
Canola Price Change
Mar 837.60 dn 4.60
May 838.40 dn 2.60
Jul 838.80 dn 3.20
Nov 814.60 dn 1.10
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
01-13-23 1211ET
