By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Oct. 5 (CNS Canada) – ICE Futures Canada canola contracts were mixed on Thursday, although the bias was higher in the most active months as gains in Chicago Board of Trade soybeans and weakness in the Canadian dollar provided support.
The currency lost about two-thirds of a cent relative to its US counterpart, which helped underpin crush margins.
Speculative buying interest contributed to the gains, as the November contract tested nearby resistance.
However, expectations that farmers will make good progress bringing in the last of the crop over the Thanksgiving weekend tempered the advances. Canadian markets will be closed Monday, October 9, for Thanksgiving.
Read Also
Canadian Financial Close: C$ softens Tuesday
Glacier FarmMedia — The Canadian dollar was slightly weaker on Monday, as the latest inflation data The Canadian dollar settled…
Losses in CBOT soyoil, steady farmer selling, and a lack of significant export demand also weighed on prices, according to participants.
About 27,246 canola contracts traded on Thursday, which compares with Wednesday when 16,622 contracts changed hands. Spreading accounted for 16,536 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
Soybean futures at the Chicago Board of Trade moved higher on Thursday, with harvest delaying rains in parts of the Midwest accounting for some of the strength.
Soybeans moved above both the 10 and 20 day moving averages, bringing in some additional speculative buying.
Weekly U.S. soybean export sales were reported at just over one million tonnes, which were in line with expectations, but well off last week’s levels.
Corn prices were also higher, as the market was due for a bit of a correction after hitting its lowest levels in two weeks yesterday.
Harvest delays across the U.S. Corn Belt contributed to the strength, while declines in European production prospects were also supportive.
Weekly U.S. corn export sales of about 800,000 tonnes were another supportive influence, as they beat trade guesses.
Wheat was mixed, with losses in Chicago and Kansas City futures lower and Minneapolis higher as the wheat spreads saw some adjustments.
Weekly U.S. wheat export sales came in at about half a million tonnes, which were at the high end of expectations. Tight supplies of higher protein wheat also kept Minneapolis spring wheat underpinned.
However, large European and Russian crops kept a lid on the market. New numbers out today pegged this year’s European Union wheat crop at 140.4 million tonnes, which would be up by about 6.5 million tonnes on the year.
