By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, April 20 (CNS Canada) – ICE Futures Canada canola contracts bounced off their session lows in the final minutes of trade to settle narrowly mixed as the market consolidated ahead of the weekend.
After posting sharp gains on Thursday, canola was looking a bit overdone to the upside, and was lower in sympathy with Chicago Board of Trade soybeans for most of the session.
Concerns over a looming strike at Canadian Pacific Rail were also overhanging the market. While a disruption in rail movement would lead to tightness at the ports, the resulting backlog on the Prairies would be bearish overall for prices.
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The Canadian dollar was weaker, having lost about one cent relative to its United States counterpart over the past week. That provided some underlying support for the futures.
About 25,581 canola contracts traded on Friday, which compares with Thursday when 33,020 contracts changed hands. Spreading was a feature, accounting for 17,064 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were down on Friday, as forecasts calling for warmer temperatures across the Midwest cast a bearish tone over the ag markets. The better weather should help farmers finally make some progress with spring seeding.
Ongoing concerns over a trade dispute between the United States and China also weighed on values, with export demand possibly slowing down.
Farmers in Argentina are making good progress bringing in their soybean crop, according to reports out of the South American country. While the newly harvested supplies are slightly bearish, production will still be down considerably on the year due to drought.
CORN futures were also pressured lower by the improving Midwestern weather forecasts, with losses in wheat also weighing on values.
The late start to spring seeding had led to ideas some intended corn acres would shift into soybeans.
WHEAT futures were weaker on the day, as some much needed rain is expected to over much of the dry southern U.S. Plains this weekend and there’s more moisture in the longer-range forecasts.
Large world supplies, bearish technical signals, and a lack of significant export demand for U.S. wheat added to the softer tone.
