By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, March 23 (CNS Canada) – ICE Futures Canada canola contracts settled with small gains on Friday, recovering from earlier losses as speculative buying interest provided support.
After drifting lower with Chicago Board of Trade soybeans and soyoil in early activity, canola uncovered some support of its own and moved above unchanged in the most active front months.
Concerns over a mounting trade dispute between China and the United States accounted for much of the weakness in soybeans throughout the day. However, any disruptions in U.S. soybean sales to China could open the door for other suppliers, including Canadian canola.
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Large old crop canola stocks, expectations for increased seeded acres this spring, and a firmer tone in the Canadian dollar all served to temper the upside in the futures.
About 16,559 canola contracts traded on Friday, which compares with Thursday when 9,047 contracts changed hands. Spreading accounted for 8,144 of the contracts traded.
SOYBEAN futures settled with small losses in the most active months, pressured by the mounting trade dispute between China and the U.S.
While the Chinese tariffs announced overnight did not specifically include soybeans, traders were still concerned that the dispute between the two countries will escalate with grains and oilseeds a likely target.
Weekly soybean sales of about 900,000 tonnes for old and new crop combined, were reported by the U.S. Department of Agriculture.
Positioning ahead of next week’s acreage report was also a feature, with expectations for record large U.S. soybean plantings this spring.
Dryness concerns in Argentina remained supportive for soybeans. However, the production issues there have largely been priced into the market for the time being.
CORN posted small gains at the close, as the market recovered from earlier losses. Weekly U.S. corn export sales were solid at 1.5 million tonnes, but at the low end of trade guesses.
Expectations for smaller U.S. corn acres this spring, as some area swings into soybeans, provided support.
However, China’s tariffs on U.S. pork spilled into the feed sector and put some pressure on values.
WHEAT futures ended higher, recovering from earlier losses.
The latest weather models are showing less moisture for the dry U.S. Plains over the next week than earlier thought, which provided some support.
Weekly wheat exports of about 400,000 tonnes for old and new crop combined were in line with expectations.
