By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, December 30 – THE ICE Futures Canada canola market settled mostly higher Friday as traders positioned themselves ahead of the long weekend. Markets in North America will be closed on Monday to mark the New Year.
The market received technical support as canola lagged the drop in the US soy market.
Some parts of South America are too dry which underpinned prices.
Slow farmer selling added to the gains.
However, losses in the US soy complex and European rapeseed futures were bearish for the market.
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The Canadian dollar was a quarter of a cent higher relative to its US counterpart, which undermined canola.
Milling wheat, barley and durum were untraded.
About 15,755 canola contracts traded on Friday which compares with Thursday when 27,943 contracts changed hands. Spreading accounted for about 4,127 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed five to nine cents per bushel weaker on Friday, feeling pressure from lower weekly export sales reported by the United States Department of Agriculture (USDA).
Net sales for the week ending December 22 totalled 974,100 metric tonnes for 2016/2017, down 46 per cent from the previous week and 40 per cent from the prior four-week average, the USDA said.
Generally favourable South American weather added to the downside, though traders are keeping a weather premium in the market.
Analysts say areas in Argentina and Brazil are too dry, which limited losses.
Looking to 2017, industry groups expect a firm oilseed market.
Rabobank, a Dutch financial services company, expects global demand for soybeans to rise in the New Year, which is bullish.
SOYOIL prices closed weaker on Friday.
SOYMEAL closed lower on Friday.
CORN futures were mostly unchanged to two cents per bushel higher on Friday, supported by export data from the USDA.
Sales in the week ending December 22 totalled 958,600 metric tonnes for 2016/2017, which is in-line with analyst expectations.
However, the market declined on the year, pressured by a generally stronger US dollar and high global supplies.
WHEAT closed about three cents per bushel higher on Friday, as export sales came in slightly higher than analysts had expected.
Net sales reported by the USDA for the week ending December 22 totalled 568,100 metric tonnes for delivery in marketing year 2016/2017, and were up 91 per cent from the previous week and 25 per cent from the prior four-week average.
In 2017, the market is expected to continue feeling pressure from ample global supplies, though demand for high-quality grain could underpin values.
