By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 10 (MarketsFarm) – The ICE Futures canola market was mixed at Friday’s close, gains in the front months and losses in the more deferred positions.
A rally in Chicago soyoil helped pull the nearby canola contracts up from earlier losses, with solid export demand also supportive.
Canada exported 210,500 tonnes of canola during the week ended Feb. 5, taking the year-to-date total to 4.5 million tonnes, according to the latest Canadian Grain Commission data. That compares with only 3.5 million at the same point the previous crop year.
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However, strength in the Canadian dollar, which was up by more than half-a-cent relative to its United States counterpart, put some pressure on values. Overnight losses in Malaysian palm oil also weighed on canola prices.
About 42,388 canola contracts traded on Friday, which compares with Thursday when 38,890 contracts changed hands. Spreading accounted for 34,056 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, as a rally in soyoil and uncertain production prospects out of Argentina provided support.
The Buenos Aires Grain Exchange pegged Argentina’s soybean crop at 13 per cent good-to-excellent, which was up one point from their last estimate, but the amount in the poor-to-very poor category was also up by two points at 48 per cent.
The exchange forecast soybean production for the country at 38 million tonnes, well off the United States Department of Agriculture’s already low 41 million tonne estimate from earlier in the week.
The latest weather forecasts call for more heat and dryness for the South American country, with the likelihood of yield losses keeping soybeans well supported.
CORN was also underpinned by Argentina’s hot and dry weather outlook, with end of the week positioning adding to the gains as prices moved back above some key moving averages.
Argentina’s corn crop was pegged at 20 per cent good-to-excellent, down two points from the last estimate. Meanwhile the poor-to-very-poor rating was up two points at 34 per cent.
WHEAT posted solid gains amid heightened tensions in Ukraine, as Russian missile attacks intensified.
Bullish chart signals were also supportive, with some stops hit on the way up.
