WINNIPEG, Oct. 6 (MarketsFarm) – The ICE Futures canola market settled with small losses on Friday after trading to both sides of unchanged in choppy activity. Canadian markets will be closed Monday for Thanksgiving and positioning ahead of the long weekend was a feature.
The nearby November contract continued to test chart support at C$710 per tonne but managed to close above the psychological level.
Losses in Chicago soybeans accounted for some spillover selling pressure, while soyoil and European rapeseed futures were mostly higher.
Wide crush margins remained a supportive influence for canola, keeping domestic processors on the buy side. Waning harvest pressure was also supportive, with most of the canola off the fields across Western Canada.
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There were an estimated 32,839 contracts traded on Friday, which compares with Thursday when 51,297 contracts traded. Spreading accounted for 23,578 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were lower on Friday, taking back all of Thursday’s gains as markets reacted to better-than-expected United States jobs data and the likelihood of increased interest rates.
Seasonal harvest pressure contributed to the declines. While rains were causing delays in parts of the Midwest, the longer-range forecasts look reasonably favourable for most of the region which should allow producers to make good progress.
The U.S. Department of Agriculture releases updated supply/demand estimates next week, with pre-report positioning a feature.
CORN futures were thought to be due for a correction after rallying sharply higher on Thursday, with the December contract running into major chart resistance at US$5.00 per bushel.
While seasonal harvest pressure was bearish, concerns over the next South American crop were somewhat supportive. Heavy rains have caused issues in parts of Brazil, while Argentina continues to deal with drought conditions which may cut into acres.
WHEAT was weaker across the board. After rallying Thursday on news of a Turkish cargo ship being damaged by a mine in the Black Sea, the sentiment shifted on Friday as traders focused on the fact that grain was still moving out of the region despite the ongoing conflict.
In addition to the dryness in Argentina, Australia is also thought to need moisture, with the lack of rain there cutting into wheat production prospects.
