By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, May 5 – The ICE Futures Canada canola market posted solid gains to end the week, propelled upwards by today’s Statistics Canada stocks report, fund buying and sharp advances in Chicago Board of Trade soyoil.
As of March 31, 2017, Canada has roughly 6.6 million tonnes of canola stockpiled across the country, according to StatsCan. That is roughly two million tonnes less than last year and confirmed ideas that stocks are tight.
Slow farmer selling was supportive for values, said a trader in Manitoba.
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“Farmers have been mostly selling on rallies, getting 12 bucks a bushel for canola,” he said.
Advances in Malaysian palm oil were supportive.
However, the Canadian dollar was about a quarter of a cent higher
than its US counterpart, which made canola less attractive to
out-of-country buyers.
Slight losses in nearby soybean contracts weighed on values.
Around 28,831 canola contracts were traded on Friday, which
compares with Thursday when around 14,167 contracts changed hands. Spreading accounted for about 13,512 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed up one cent to down two cents per bushel on Friday.
Front contracts declined with reports of Argentina’s progressing soybean harvest.
Losses in the Brazilian real also spurred some producer-selling, which is bearish.
However, rain in the US Delta is slowing field work, analysts say, which underpinned far contracts.
Market watchers say some areas in the US will need to be re-seeded, which added to the upside.
SOYOIL prices closed stronger on Friday.
SOYMEAL closed lower on Friday.
CORN futures closed about four cents per bushel higher on Friday, underpinned by wet fields in key US growing areas.
Reports of slower seeding progress in Ukraine added to the upside.
However, Argentina’s progressing harvest put a lid on gains.
WHEAT closed about one to three cents per bushel higher ahead of the weekend, also underpinned by wet weather in the US.
Corrective trade after sharp declines in the previous session was also a feature.
There may have been frost-damage to winter wheat crops in the US, which added to the upside.
