By Terryn Shiells and Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Sept 26 – ICE Futures Canada canola contracts ended narrowly mixed on Friday, after a day of choppy day that was linked to heavy spread action, analysts said.
The sharply lower Canadian dollar was bullish, as it uncovered some fresh export demand and improved crush margins, brokers noted.
Support also came from a lack of aggressive farmer selling as they focus on getting as much harvest done as possible before weather becomes unfavourable again.
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On the other side, sharp declines seen in Chicago soybean and soyoil futures spilled over to weigh on canola.
Expectations that Canadian canola production will be larger than first anticipated were also bearish.
About 39,112 contracts traded on Friday, which compares with Thursday when 20,072 contracts changed hands.
Milling wheat, durum and barley futures were untraded, though the Exchange adjusted wheat prices following Friday’s close.
SOYBEAN futures at the Chicago Board of Trade were down 10 to 13 cents per bushel on Friday, continuing to test fresh contract lows as mounting harvest pressure weighed on values.
Weather forecasts remain favourable for harvest activity and crop development across the Midwest, which means the record large crop projections are starting to become a reality.
Chinese buying is expected to slow down over the next week, as the country celebrates the Golden Week holiday. There was also news out of China today that it had suspended import approvals for an, as yet, unnamed genetically modified soybean variety.
SOYOIL futures were down on Friday, backing away from gains posted earlier in the week as losses in Malaysian palm oil and other outside vegetable oil markets weighed on values.
SOYMEAL futures were down on Friday, finding some direction from the losses in soybeans.
CORN futures in Chicago were down three to four cents per bushel on Friday, as the good US crop weather and record production prospects continued to overhang the market.
However, corn did lag soybeans to the downside as US farmers are expected to focus on selling their soybeans before their corn, as corn will need time to dry down.
Solid export demand and ideas that corn is looking oversold provided some underlying support, according to participants.
WHEAT futures in Chicago were narrowly mixed on Friday, settling within a penny of unchanged as large global crops on the one side were countered by expectations for increased demand. Minneapolis and Kansas City contracts were slightly weaker on the day.
In a report released Thursday, the International Grains Council raised their estimate on the size of this year’s global wheat production to 717 million tonnes, from 713 million in August.
However, wheat futures have already posted large losses and US prices are starting to look more attractive to export customers once again.
• A strain of genetically modified wheat was discovered growing in Montana this past July, the USDA announced Friday. The “Roundup Ready” strain was never approved for sale or consumption, but is not the same variety found in Oregon in 2013.
• The European Union announced export sales of 613,000 tonnes of soft wheat during the past week. Total exports in the crop year to date, of 6.4 million tonnes, are up from the 6.2 million exported during the same time in 2013.
• France has reportedly taken delivery of a 22,000 tonne cargo of high quality Canadian wheat, which would be the biggest direct sale between the two countries in recent history.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
