By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Sept. 8 (CNS Canada) – ICE Futures Canada canola contracts were lower at Friday’s close, after a choppy day that saw values bounce within a wide range.
The sharp move higher in the Canadian dollar over the past week remained a bearish influence, although the currency finally saw a pause in its upward move relative to its US counterpart on Friday.
Tight old crop supplies, solid end user demand, and ideas that the losses were looking overdone were also supportive.
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However, the advancing Western Canadian harvest kept the overall bias pointed lower at the final bell. The latest Canadian Grain Commission data showed heavy farmer deliveries into the commercial pipeline of 544,000 tonnes during the week ended September 3.
Losses in the Chicago Board of Trade soy complex also weighed on prices.
About 13,831 canola contracts traded on Friday, which compares with Thursday when 24,770 contracts changed hands. Spreading accounted for 5,706 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
Speculative selling weighed on soybeans on Friday, taking values off of nearby highs in the last half-hour of trade as participants squared positions ahead of the weekend.
While Hurricane Irma is not expected to have a large impact on the grains and oilseeds, the general caution in the energy and financial markets caused by the massive storm was also being felt in the ag sector.
Weekly US soybean export sales of about 1.5 million tonnes were at the top end of trade estimates, which provided some support. The USDA also reported an additional sale of 264,000 tonnes to China this morning.
A separate report out of China showed the country imported 8.5 million tonnes of soybeans in August, which was a record for the month.
Corn prices posted small gains, as weekly US corn export sales of just under 1.5 million tonnes provided support.
Positioning ahead of the September 12 USDA supply/demand report was another feature.
However, the looming harvest weighed on prices amid expectations for a large US crop.
The US wheat markets were mixed on Friday amid a lack of any real fresh fundamental news.
Weekly US wheat export sales came in at 375,000 tonnes, according to the USDA. Exports are expected to pick up going forward, given recent weakness in the US dollar.
However, ample world wheat supplies remained bearish overall for wheat.
