By Dave Sims and Phil Frans-Warkentin, Commodity News Service Canada
Winnipeg, January 20 – THE ICE Futures Canada canola market settled mostly higher to end the week, as traders engaged in speculative buying.
Investors were liquidating some short positions as well, according to a trader in Winnipeg.
Demand for global oilseeds remains strong, and European rapeseed futures recorded contract highs overnight.
Gains in crude oil were also supportive for canola.
However, canola came off its highs near the end of trade due to action in the Canadian currency.
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Losses in the US soy complex limited the advances.
Drier weather in Argentina should give farmers the chance to plant more soybeans, which was bearish.
Milling wheat, barley and durum were untraded.
About 27,128 canola contracts traded on Friday which compares with Thursday when 24,748 contracts changed hands. Spreading accounted for about 16,504 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were down by one to three cents per bushel on Friday, as the market continued to back away from the nearby highs hit earlier in the week.
Improving South American weather forecasts contributed to the softer tone in soybeans. In addition, expectations for increased US soybean acres in 2017 were also bearish.
Weekly US soybean export sales, at 980,000 came in above trade expectations and provided some underlying support for soybeans. Soyoil and soymeal sales also beat expectations.
SOYOIL futures settled lower on Friday.
SOYMEAL futures posted small gains on Friday, as spreading against soyoil and solid weekly export demand provided support.
CORN futures in Chicago were steady to up by two to three cents per bushel on Friday, with good export demand providing support.
The USDA reported weekly US corn export sales of nearly 1.4 million tonnes, which beat trade expectations. An additional sale of 126,000 tonnes to unknown destinations was also reported.
A survey of farmers predicted a small decline in intended corn seedings in 2017 compared to the previous year.
WHEAT futures in Chicago were up by two to five cents per bushel on Friday, with chart-based buying providing some support.
Positioning between the three US wheat contracts was a feature on the day, as the Minneapolis futures turned lower and the spreads narrowed in.
Weekly US wheat exports were the third lowest of the year to date, at about 300,000 tonnes old and new crop combined.
