By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Dec. 1 (CNS Canada) – ICE Futures Canada canola contracts fell to their weakest levels over a month on Friday as a sharply stronger tone in the Canadian dollar weighed on values.
The currency was up by roughly a cent relative to its U.S. counterpart, cutting into crush margins and making exports less attractive to global buyers.
Solid farmer deliveries in the latest weekly Canadian Grain Commission report and the resulting increase in visible commercial stocks added to the softer tone, with end users only buying on a scale-down basis.
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However, gains in Chicago Board of Trade soybeans provided some underlying support, according to participants.
Statistics Canada releases its final production estimates of the year on December 6, and positioning ahead of that report remained a feature.
About 21,310 canola contracts traded on Friday, which compares with Thursday when 19,989 contracts changed hands. Spreading accounted for 13,724 of the contracts traded.
Soybean futures at the CBOT moved higher on Friday, as gains in crude oil and weakness in the United States dollar index provided support.
Solid export demand, especially from China, and persistent weather concerns in parts of South America, contributed to the gains. News that Cargill plans to build a biodiesel plant in Kansas was also supportive.
However, the weather forecasts are showing improvement in Argentina, which tempered the gains. Large U.S. supplies also kept a lid on the market.
Corn was up by two to three cents per bushel on the day, with supportive technical signals ahead of the weekend accounting for some of the buying interest.
Recent weakness in the corn market was also making exports more attractive to some global buyers and China was reportedly in the market for more U.S. corn.
Wheat was higher across the board, as traders adjusted positions ahead of the weekend. Expectations for increased export demand, as prices are looking more competitive in the global market, added to the firmer tone.
Harvest delaying rains in parts of Australia also provided some support for wheat.
