By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Sept. 22 (CNS Canada) – ICE Futures Canada canola contracts moved higher on Friday, finding some spillover support from a rally in Chicago Board of Trade soybeans.
Good export demand for both US soybeans and Canadian canola contributed to the firmer tone in the oilseeds on Friday, according to a broker.
Supportive chart signals contributed to the gains, as the most active November contract tested the 200-day moving average.
However, seasonal harvest pressure tempered the advances, as farmers continue to make steady deliveries into the commercial pipeline.
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About 21,620 canola contracts traded on Friday, which compares with Thursday when 12,701 contracts changed hands. Spreading accounted for 10,790 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
Soybeans posted solid gains on Friday, as solid export demand provided the catalyst for the fund buying that took prices to their highest levels in more than a month.
The USDA reported an export sale of 190,000 tonnes of US soybeans to Mexico this morning. The business capped off a busy week of export activity, including Thursday’s weekly sales report topping 2.3 million tonnes.
Weather concerns in parts of South America, including dryness in Brazil and excessive moisture in parts of Argentina added to the firmer tone.
However, US harvest pressure tempered the gains, with early yield reports generally beating expectations.
The rally in beans provided some spillover support for corn, with recent weakness in the US dollar index also supportive.
However, the advancing US harvest tempered the upside, with corn yields also coming in better than expected for the most part.
Wheat was mixed with gains in Minneapolis and losses in the Chicago futures. Oversold price sentiment accounted for some of the buying interest, while tight supplies of higher protein wheat and expectations to a downward revision to the US spring wheat crop in a report out next week were also supportive.
Dryness in Australia and excessive moisture in Argentina contributed to the gains in wheat.
However, world wheat supplies remain large overall, with large Russian crops overhanging the market.
