Canola Futures Expected to Start Thursday's Session on Steady to Slightly Higher Footing
Canola futures are anticipated to begin the week with a steady to slightly higher start, driven by the Canadian dollar's pull-back in value and the higher calls for CBOT soybean futures. Additionally, traders are expecting position evening ahead of the Easter holiday weekend. However, bearish sentiment in canola is emerging due to the declines in Malaysian palm oil futures and the substantial soybean supplies in both South America and the US.
Key Takeaways:
- Canola futures are expected to open steady to up C$1.00 per metric ton in choppy trade.
- Traders believe canola has room to move up given the pull-back in the Canadian dollar's value and higher calls for CBOT soybean and soyoil futures.
- However, the soft close in canola on Wednesday has left the market vulnerable to a sell-off.
- Malaysian palm oil futures declined overnight, adding to the bearish sentiment in canola.
- Soybean supplies in South America and the US are substantial, putting downward pressure on canola prices.
- Prospective canola plantings in Canada are not expected to decline significantly from last year's level.
- Farmer selling has picked up as producers attempt to raise cash to cover spring fieldwork costs.
- WCE feed wheat and western barley futures are expected to open 50 cents on either side of unchanged.
Statistics:
- C$1.00 per metric ton: expected increase in canola futures.
- 50 cents: expected opening range for WCE feed wheat and western barley futures.
- 2006: copyright year for Resource News International.
Sources:
- Resource News International
- COMTEX