By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, August 28 – ICE Futures Canada canola contracts posted solid gains on Friday, as a rally in crude oil and CBOT soyoil spilled over to underpin the oilseed.
After posting large losses early in the week, some of the buying interest was also tied to position evening ahead of the weekend, according to participants.
Harvest delaying rains in parts of Western Canada were another supportive feature, with traders still keeping some weather premiums in the market for the time being.
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A generally bearish technical outlook also put some pressure on values.
About 25,467 canola contracts were traded on Friday, which compares with Thursday when 16,863 contracts changed hands.
Milling wheat, durum, and barley were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 477.70 up 4.90
Jan 482.10 up 4.70
Mar 486.10 up 4.50
Milling Wheat Oct 226.00 unch
Dec 226.00 unch
Durum Oct 335.00 unch
Dec 335.00 unch
Barley Oct 191.90 unch
Dec 191.90 unch
SOYBEAN futures at the Chicago Board of Trade closed six to seven cents per bushel higher Friday, as market watchers say concerns about global stock markets have been easing, which supported prices.
Analysts say weather concerns during a critical stage in the growing cycle also had a bullish effect on prices.
Soybeans need moisture to finish filling pods, but weather in the US Midwest has turned dry.
SOYOIL prices settled stronger Friday as a rally in crude oil provided support.
SOYMEAL closed lower Friday following neighbouring markets.
CORN futures closed one cent per bushel lower to one cent per bushel higher Friday as favourable weather and early harvest progress in the US had a bearish effect on prices.
Analysts say a weekly USDA export report has been bullish short-term, but sales have still been behind those in recent years, which is bearish overall.
WHEAT futures in Chicago closed five to seven cents per bushel lower Friday as a major grain purchaser tendered Russian supplies.
On Thursday Egypt opted to purchase Russian wheat, which analysts say highlights the lack of competitiveness of US grains.
A continued global supply glut and a lack of demand have been consistently moving prices lower as sellers try to find demand.
– All three US wheat markets hit contract lows.
– Analysts say fundamentally there is not much news in the market, though row crops could lend support.
