By Terryn Shiells and Jade Markus, Commodity News Service Canada
Winnipeg, July 31 – Canola contracts on the ICE Futures Canada trading platform ended higher on Friday, breaking above the key C$500 per tonne level after staging a late day rally.
Traders were covering shorts ahead of the long weekend as Canadian markets will be closed on Monday, August 3, while US markets will be open, analysts said.
The softer tone in the Canadian dollar was also underpinning values, as it made canola more attractive to crushers and exporters.
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There are some parts of Manitoba and Saskatchewan that have received too much rain this week, which was also supportive, as it could lower yield potential.
However, weakness in the Chicago soy complex weighed on the market, as did improving weather conditions for US soybeans and Canadian canola in some regions.
About 16,477 contracts traded on Friday, which compares with Thursday when 13,760 contracts changed hands. Spreading accounted for 7,792 of the trades.
Milling wheat, barley and durum futures were untraded. Though, the Exchange moved wheat prices lower after Friday’s close.
SOYBEAN futures at the Chicago Board of Trade closed five to 11 cents per bushel weaker on Friday amid a cancelled export order.
The US Department of Agriculture said Friday morning that China had cancelled an order for 200,000 tonnes of US soybeans, which is bearish.
However, a lack of crop improvement in the eastern United States could support prices in weeks to come.
SOYOIL prices settled weaker on Friday following soybean futures.
SOYMEAL closed lower Friday following nearby markets.
CORN futures closed two to four cents per bushel weaker Friday amid market talk that heavy rain in June and July did not affect crops in the US Corn Belt as much as anticipated.
A crop tour moving through Illinois has reported that corn crops are in good condition and damage is minor for the most part, which is bearish.
A positive forecast for corn growing areas, with mild precipitation added to the bearish tone.
WHEAT futures in Chicago closed two cents per bushel higher to two cents per bushel lower on Friday. Nearby contracts were up as a weaker US dollar makes the commodity more appealing to foreign buyers, market watchers say.
Wheat prices on Friday were supported by earlier losses, which made US crops affordable to importers, traders say.
Wheat prices were also underpinned by a better than anticipated export report. Analysts had estimated wheat exports at about 450,000 tonnes, but they ended at 699,100 tonnes.
However, good crop prospects for US spring wheat and a large global supply situation was bearish.
• The Wheat Quality Council Tour broke a new yield record at 49.9 bushels per acre.
• Ukraine is 78 per cent done its harvest, and has produced 27.284-million tonnes of grain so far.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
