By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, August 7 – THE ICE Futures Canada canola market finished higher in light-volume trade, taking strength from the advances in the US soy complex.
Although recent rains have alleviated dry conditions across parts of the Prairies there are still concerns about the lateness of the crop.
Slow farming selling was supportive while market participants also showed little activity, according to analyst Keith Ferley of RBC Dominion Securities in Winnipeg.
“End users and growers still have their hands deep in their pockets; the trade has been boring,” he said.
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Traders continue to position themselves ahead of the USDA World Agricultural Supply and Demand Estimates report which is due to be released on Wednesday, August 12. Already, there is speculation that report will show lower US soybean acreage.
The Canadian dollar was slightly weaker relative to its US counterpart which made canola more attractive on the international market.
However, participants were reluctant to push the market too hard, one way or the other, ahead of the release of the USDA report, said a trader.
The most-active November contract briefly tested the key C$500 per tonne mark early in the day before rising above it for the remainder of the session.
Losses in Malaysian palm oil limited the gains.
Milling wheat, barley and durum were all untraded.
Around 6,401 canola contracts were traded on Friday, which
compares with Thursday when around 8,800 contracts changed hands.
Spreading accounted for 2,340 of the contracts traded.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade closed 14 to 23 cents per bushel stronger Friday as demand for soybeans grew after sharp losses last week, analysts say.
The US Department of Agriculture announced a new sale of 132,000 metric tonnes (MT) of soybeans, which will be delivered to private exporters in China during the 2015-16 season.
Prices were also supported by the expectation that an upcoming USDA report will reduce its estimates for soybeans due to excess moisture earlier in the growing season.
The USDA report is due out August 12.
SOYOIL prices settled stronger on Friday.
SOYMEAL closed higher Friday following soybean futures.
CORN futures closed two to three cents per bushel stronger on Friday as investor short-covering supported prices, market watchers say.
Prices were also strengthened by the expectation that the USDA will reduce corn production estimates in its August 12 report.
Traders say ethanol production has increased seven per cent from last year’s numbers, which is bullish.
WHEAT futures in Chicago closed three to five cents per bushel higher on Friday, coasting on strength from marketing-year-high exports detailed in a report released on Thursday.
The market is waiting for fresh news in order to react, as growing countries start or near harvest.
On Thursday the USDA released a report saying wheat sales had reached 838,500 MT, up 20 per cent from the previous week and up 82 per cent from the previous four-week average, says the USDA report.
– Spring wheat harvest was delayed after rain hit North Dakota and Minnesota, analysts say. However, activity is expected to pick up and should be about 15 to 20 per cent finished by Sunday.
– Mills in South Korea say wheat prices are too high, and passed on two tenders, market watchers say
