By Terryn Shiells and Dave Sims, Commodity News Service Canada
WINNIPEG, Sept. 12 – ICE Futures Canada canola contracts ended slightly higher on Friday, finding some spillover support from the sharp advances seen in Chicago soyoil futures, analysts said.
Significant losses in the value of the Canadian dollar during the week were also bullish, as they made canola more attractive to crushers and exporters.
Worries about possible damage to Canadian canola crops, due to very cold weather and frost this week, were also underpinning prices. Though, forecasts for next week are calling for warmer conditions.
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If canola futures were following the US soy markets fully, they would’ve settled much higher. But, traders were reluctant buyers as they’re not sure what side of the market to be on, according to a broker.
Downward pressure came from expectations of record large US soybean production, and a pickup in farmer selling as harvest is underway in some parts of Western Canada.
About 13,080 contracts traded on Friday, which compares with Thursday when 16,401 contracts changed hands.
Milling wheat, durum and barley futures were untraded, though the Exchange moved milling wheat and barley prices lower following Friday’s close.
CORN futures in Chicago drifted two cents per bushel lower Friday, still reeling from Thursday’s USDA crop report which predicted record-breaking US production and yields.
US ending stock projections for 2014/15 came in at 2.002 billion bushels while feed usage was revised upwards by 75 million bushels.
Concerns of a large potential freeze in the upper Midwest this weekend have subsided, although a few pockets of frost are expected in Iowa, Minnesota and Wisconsin, said an industry watcher.
Port customs workers in Argentina are reportedly preparing to strike for 4 days which limited the declines.
SOYBEAN futures at the Chicago Board of Trade corrected three to four cents per bushel higher, supported by strong demand and a risk of frost in the US Midwest.
The USDA reported a private sale of 131,000 metric tonnes of soybeans on Friday. Some traders speculated the seeds were bought by China.
Rain in parched sections of north-central India is expected to aid development of soybean crops in the region, according to a report.
SOYOIL futures ended higher on Friday, following palm oil, said an analyst.
SOYMEAL futures recorded slight losses, with spreading against soyoil considered a feature.
WHEAT futures in Chicago sunk six to seven cents per bushel lower on Friday, as the impact of Thursday’s USDA monthly report continued to pressure values, alongside heavy exports coming out of the Black Sea.
The December contract hit a low today of US$5.00, which is a psychologically important price-point, traders said.
The bias continues to point downward as global supplies pile up, said an analyst.
Wheat from the European Union is now trading at a four-year low, further adding to the bearish tone, according to a report.
• French silo operator Senalia is reportedly halting reception of wheat deliveries due to weak exports.
• Grain production in Ukraine is now expected to reach 59 million tonnes for this year, according to reports.
• Hungarian wheat prices in July of 2014 were down 5 per cent from the same time last year. Increased global competition is likely a major reason why, according to an analyst.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
