By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, April 7 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Friday, recovering from earlier losses as gains in Chicago Board of Trade soyoil and speculative short-covering provided support.
A general sense of uncertainty in the global financial and energy markets, following a US missile strike on Syria, kept some caution in the agricultural sector as well and likely led to some fund short covering, according to a broker.
Tightening old crop supplies and the need to ration some demand added to the firmer tone.
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However, the large South American soybean crop and expectations for big North American oilseed acres this spring remained bearish.
About 25,871 canola contracts traded on Friday, which compares with Thursday when 30,416 contracts changed hands. Spreading accounted for 13,800 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed mixed, but mostly unchanged, on Friday.
Front contracts were gathering support from losses in the US dollar. The greenback saw some recovery late in the day on Friday, but hit a five-month-low in earlier trade, which is bullish for soybeans.
Strength in the nearby soy oil market also underpinned values.
However, the expectation for high US production and competing supplies from South America pressured deferred contracts.
SOYOIL prices closed higher on Friday.
SOYMEAL closed weaker on Friday.
CORN futures were about one cent per bushel lower on Friday, declining with competing supplies from South America.
High stockpiles amid a lack of fresh news were also bearish for the grain.
WHEAT closed mixed, but mostly unchanged on Friday.
Front contracts were supported by strong export demand, as US wheat has become competitive internationally.
But far contracts felt pressure from high stockpiles.
