By Phil Franz-Warkentin and Terryn Shiells, Commodity News Service Canada
April 10, 2015
Winnipeg – ICE Futures Canada canola contracts were narrowly mixed at Friday’s close, as participants squared positions ahead of the weekend.
Speculative buying interest, routine commercial demand, and a lack of significant farmer selling all helped underpin canola throughout the session, according to traders.
Gains in CBOT soyoil also provided some spillover support.
However, soybeans were down in the US, which tempered the upside potential in canola. Large global oilseed supplies were also said to be putting some pressure on values.
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The Canadian dollar held near unchanged, providing little direction for canola.
About 20,049 canola contracts were traded on Friday, which compares with Thursday when 27,370 contracts changed hands. The May/July spread was a feature of the activity as participants were rolling their positions out of the front month.
Milling wheat, durum, and barley were all untraded.
CBOT SOYBEAN futures ended two to three cents US per bushel softer on Friday, as the large global supply situation weighed on prices.
Brazil’s government upped their soybean production estimate for 2014/15 by 1.0 million tonnes, to 94.3 million tonnes, due to favourable weather conditions.
Signs of weak export demand for US supplies and expectations of record large acreage in the US this spring added to the bearish tone.
However, sentiment that the market was oversold after hitting a nearly six-month low on Thursday tempered the declines, analysts said.
SOYOIL futures finished firmer, seeing an upward correction following recent losses. Spreading against soymeal was also a feature of the activity.
SOYMEAL futures were weaker, as spreading against soyoil weighed on values, according to market watchers.
CORN futures in Chicago finished steady to one cent US per bushel lower on Friday, undermined by the large global supply situation.
A lack of fresh demand news for US corn supplies was also overhanging the market, according to participants.
However, concerns about planting delays in the US Delta were supportive, as they could lead to reduced corn acreage this spring.
WHEAT futures on all three US trading platforms ended two to eight cents per bushel stronger Friday, seeing some short covering ahead of the weekend, traders said.
Renewed concerns about dryness in parts of the US Midwest hurting winter wheat crops coming out of dormancy added to the bullish tone.
However, global supplies of wheat remain large, which was limiting the upside.
• Morocco’s government is raising its import duty on soft wheat from 17.5 per cent to 75 per cent from May 1 to October 31, as the country anticipates record large cereal production this year.
• The United Kingdom exported 267,000 metric tons in February, including 135,000 tons to countries outside of the European Union, according to reports.
• The wheat crop in Ukraine is estimated at 20 million metric tons this year, down 4.1 million tons from the year prior, the country’s government said.
Settlement prices are in Canadian dollars per metric ton.
