By Terryn Shiells, Commodity News Service Canada
WINNIPEG, May 8 – The ICE Futures Canada canola market ended firmer on Friday, following the gains seen in Chicago soyoil futures.
A continued lack of aggressive farmer selling, as they focus on spring field work and seeding, added to the bullish tone, analysts said.
Concerns about tight supplies of canola in Western Canada were also supportive, as was the need to keep weather premiums built into the market.
However, generally good conditions for seeding in North America so far this spring were overhanging values, as was the stronger Canadian dollar.
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Sentiment that canola is starting to look expensive compared to other oilseeds was also bearish, brokers said.
Activity remained in its recent quiet, choppy pattern, as many traders are on the sidelines waiting for more clarity on upcoming crop prospects.
About 10,697 contracts traded on Friday, which compares with Thursday when 9,291 contracts changed hands. Spreading accounted for 3,950 of the trades.
Durum futures were untraded and unchanged. Milling wheat was also untraded, but the Exchange moved wheat prices higher after Friday’s close.
The July barley contract saw 25 contracts traded at lower values.
CORN futures on the Chicago Board of Trade ended steady to two cents US per bushel higher Friday, as traders squared positions before the weekend.
Steady commercial buying interest, softness in the US dollar and strength in wheat futures were all underpinning values.
Though, expectations that dry, warm weather will help planting efforts in the Mississippi Delta were bearish for prices.
Traders anticipate that Tuesday’s USDA report will point towards a massive corn harvest in the US, which is also putting a cap on prices.
SOYBEANS eked out some minor gains on technical trading Friday. Some traders looked for bargains while others were busy covering shorts before the weekend, analysts said.
Chinese imports of soybeans were down significantly for the month of April, compared to last year, which was bearish.
Large world supplies of soybeans continued to weigh on values.
SOYOIL futures in Chicago ended 47 points higher on the day.
SOYMEAL futures finished slightly lower with spreading against soyoil a feature.
WHEAT futures in Chicago ended seven to nine cents per bushel higher Friday on speculation heavy rain in parts of the US Southern Plains could be damaging the crop.
This week’s crop tour in Kansas has concluded with multiple reports of below-average yields in parts of the state. Drought, freezing temperatures and disease pressures were all cited as reasons for the downgrade.
The weekly USDA export sales report on Thursday showed net cancellations again which was bearish.
• According to a new report, European buyers have opened the regular quota for the supply of grain from Ukraine. As of April 24, 2015 the size of the delivery quota was 24,800 tonnes of wheat.
• Pakistan’s 2015/16 wheat production is now pegged at 25.0 million metric tons due to the adverse effect of widespread late winter rains across major wheat producing areas. That is 500,000 tonnes less than the previous forecast.
• Farmers in Western Australia say a lack of rain and frosts devastated last year’s crops and they fear dry weather will again ravage this year’s plantings.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
