By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 30 (MarketsFarm) – The ICE Futures canola market was mostly stronger on Friday, as investors adjusted positions ahead of the weekend.
After seeing a profit-taking correction earlier in the week, speculators were back on the buy side on the final trading day of the month.
Solid commercial demand from exporters and domestic crushers was also supportive.
Chicago Board of Trade soybeans and soyoil were higher on the day, adding to the firmer tone in canola. The Canadian dollar held near unchanged.
Ongoing uncertainty over renewed global COVID-19 lockdown measures and the looming United States election kept some caution in all markets, including canola.
About 24,362 canola contracts traded on Friday, which compares with Thursday when 31,567 contracts changed hands. Spreading accounted for 17,088 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were up on Friday with chart-based positioning ahead of the month-end providing some support amid ideas that the recent correction lower was overdone.
The United States Department of Agriculture announced private export sales of 121,500 tonnes of soybeans to unknown destinations this morning. Daily export sales have become routine over the past few weeks, with production uncertainty in Brazil keeping end users in the market for U.S. soybeans.
However, weather forecasts calling for improved moisture conditions in dry areas of the South American country were somewhat bearish.
CORN futures also saw some consolidation ahead of the weekend, settling narrowly mixed.
A downturn in wheat put some spillover pressure on corn, while the gains in soybeans were supportive.
Demand for U.S. corn remains strong, but the lack of any fresh business on Friday weighed somewhat on prices.
WHEAT futures were mixed, with a steady tone in Minneapolis spring wheat and losses in the winter wheats as prices retreated from overnight gains. Recent rainfall across parts of the U.S. Plains was behind some of the selling.
Forecasts calling for much needed precipitation in dry Russian wheat growing regions contributed to the softer tone in the U.S. futures.
Argentina was also set to see some moisture, although any rains there may be ‘too little too late’ for their wheat crop.