By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, May 1 – The ICE Futures Canada canola market finished slightly higher Friday after a session of choppy, two-sided trade. The volatility of the action was likely exaggerated by the thin volumes.
The weakness of the Canadian dollar, relative to its US counterpart, made canola more attractive to international buyers.
Malaysian palm oil was firmer which underpinned the market while farmers hung onto their supplies as they prepared for seeding.
The weakness of the canola crush margin was also a feature, he said.
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“The Canadian Oilseed Processors Association (COPA) crush was down 15.9 percent from the week before at 126,000 tonnes. We were only running at 69 percent capacity last week so that’s light,” remarked the trader.
However the US soy complex was weaker which weighed on canola and limited the gains.
There was weak over-night activity coming into the session due to the May Day holiday which is celebrated in many countries around the world.
Large world supplies overhung the market, according to a report.
Funds were light sellers.
Around 7,901 canola contracts were traded on Friday, which
compares with Thursday when 14,164 contracts changed hands.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade were down by 10 to 13 cents per bushel on Friday, as the good US seeding weather weighed on prices.
Chart-based selling contributed to the declines, as soybeans fell below nearby moving averages, according to participants.
Ideas that there are still plenty of soybeans moving out of South America, despite the latest labour unrest in Argentina, added to the softer tone.
Bargain hunting on the other side did help temper the declines.
SOYOIL settled lower on Friday, following soybeans.
SOYMEAL futures were weaker on Friday, with ongoing concerns over declining demand from the poultry sector behind some of the selling pressure.
CORN futures in Chicago settled two to three cents per bushel lower on Friday, as great US planting weather weighed on prices.
With warm temperatures and only minimal precipitation in the forecasts, Midwestern farmers are expected to be making good seeding progress this week.
Ongoing concerns over avian influenza and a reduction in feed demand from the poultry sector also weighed on corn values, according to participants.
WHEAT futures in Chicago were steady to mostly lower on Friday, posting losses of one to two cents in the most active months as poor export demand and the improving US crop prospects weighed on values.
Forecasts are calling for some welcome moisture across parts of the US winter wheat belt, while weather conditions remain relatively favourable in other wheat growing regions of the world as well.
Speculators are already holding very large short positions in wheat, and some light short-covering at the lows helped limit the losses.
– Senalia, a major terminal operator at France’s port of Rouen, has stopped taking delivery of wheat until further notice due to a lack of demand for milling wheat to be loaded.
– Egypt’s GASC purchased 700,000 tonnes of domestic wheat from local growers in its latest tender.
– Meanwhile, Iraq and South Korea were both reported to have cancelled their latest tenders.
