By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 26 (MarketsFarm) – The ICE Futures canola market was mixed on Friday, recovering from earlier losses in the front months as sharp weakness in the Canadian dollar provided some support.
Canola had posted losses for most of the session as speculative profit-taking and a slowdown in end-user demand weighed on values.
Declines in Chicago Board of Trade soybeans also weighed on prices, although soybeans ended off their lows for the session and soyoil finished higher.
The Canadian dollar was down more than a cent relative to its United States counterpart, which helped crush margins improve and contributed to the turn higher in the front months. Ongoing concerns over tight old crop supplies also provided support.
About 36,585 canola contracts traded on Friday, which compares with Thursday when 38,999 contracts changed hands. Spreading accounted for 8,170 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Friday, seeing some follow-through selling after Thursday’s losses while participants booked profits on the last trading day of the month.
Renewed concerns over African swine fever in China and a possible downturn in demand out of the country, also weighed on prices.
However, uncertainty over the South American harvest provided some underlying support, as rains in Brazil continue to cause delays for the soybean harvest there.
CORN futures were also pressured by month-end profit-taking and concerns over declining demand from China, although the grain ended narrowly mixed.
Delays seeding Brazil’s corn crop did provide some support.
WHEAT futures were lower on the day, as Thursday’s disappointing export sales remained a bearish influence.
General strength in the United States dollar contributed to the softer tone in wheat, as the rising currency makes U.S. wheat more expensive for global buyers.
France AgriMer pegged that country’s winter wheat crop at 87 per cent good to excellent. That was up one point on the week and well above the 64 per cent good to excellent reported at the same time last year.