By Jade Markus and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, November 25 – ICE Futures Canada canola ended higher on Friday, underpinned by follow-through buying.
Ideas that demand for biofuel will be stronger in 2017 caused sharp advances in Chicago Board of Trade soy oil earlier in the week, and traders continued tracking those gains on Friday, despite soy oil closing lower.
A stronger technical bias and ideas that demand from China is picking up added to the upside.
About 21,796 canola contracts traded on Friday, which compares with Thursday when 13,696 contracts changed hands.
Read Also
Canadian Financial Close: Loonie returns above 72 U.S. cents
By Glen Hallick Glacier Farm Media | MarketsFarm – The Canadian dollar on Friday finally turned around to close higher,…
Spreading accounted for about 14,746 of the contracts traded.
Milling wheat, durum and barley futures were all untraded and unchanged.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were up by eight to 12 cents per bushel on Friday, hitting fresh four-month highs as solid export demand provided support.
The USDA reported weekly export sales of nearly 1.9 million tonnes, which was well above market expectations.
Wednesday’s rally in soyoil remained somewhat supportive as well, although soyoil took back some of its gains on Friday.
US markets were opened for a shortened session on Friday, following Thursday’s US Thanksgiving holiday.
SOYOIL futures were down slightly on Friday, as the market corrected following Wednesday’s rally. However, the move by the US Environment Protection Agency to raise its target for biodiesel production remained supportive overall.
SOYMEAL futures were stronger on Friday, following soybeans. Adjustments to the soyoil/soymeal spreads were also supportive.
CORN futures in Chicago were down slightly on Friday, after holding narrowly range-bound throughout the session.
Weekly US corn exports came in at 1.7 million tonnes, which provided some support as the sales were above trade expectations.
However, large US and world grain supplies kept corn under pressure. The International Grains Council released updated world production estimates, pegging the world corn crop at 1.042 billion tonnes. That was up by seven million tonnes from an earlier estimate and a new record.
WHEAT futures in Chicago were down by two to six cents per bushel on Friday, with large world production estimates behind some of the selling pressure.
The IGC pegged the world wheat production at a record 749 million tonnes, which was up by one million tonnes from the last estimate.
However, good export demand was supportive. The USDA pegged weekly US wheat export sales at 712,400 tonnes.
