By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Mar. 3 – THE ICE Futures Canada canola market posted gains to end the week, taking strength from speculative buying and gains in Chicago Board of Trade soyoil.
Crush margins have come off their recent lows and farmers, who were active sellers during this week’s bounce, are now waiting for stronger prices, noted a trader in Winnipeg.
Muddy roads in Brazil continue to hamper deliveries of soybeans to port, which underpinned prices.
On the other side, many analysts expect soybean acreage to rise in the US, which was bearish for canola.
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Some traders took profits before the close.
Around 15,673 canola contracts were traded on Friday, which compares with Thursday when around 22,355 contracts changed hands. Spreading accounted for about 7,572 of the contracts traded.
Milling wheat, barley and durum were all untraded but revised after the close.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade traded to both signs of unchanged on Friday only to settle within half-a-cent of Thursday’s close in all of the most active contracts.
Positioning ahead of the weekend was a feature, following the large price moves seen earlier in the week.
Expectations for large South American crops remained a bearish influence in the background of the soy market. However, ongoing logistics issues moving newly harvested supplies to port positions in Brazil were supportive on the other side.
SOYOIL futures were higher on Friday, with adjustments to the soyoil/soymeal spread providing some support.
SOYMEAL futures were lower on Friday.
CORN futures in Chicago managed to settle with small gains of one to two cents per pound.
End of the week speculative positioning was a feature of the corn market, with relatively supportive nearby technical signals somewhat supportive.
Uncertainty over US renewable fuels policy kept some caution in the corn market, following rumours of upcoming changes that circulated the market earlier in the week.
WHEAT futures in Chicago were steady to up one cent per bushel, seeing some consolidation to end the week.
A lack of significant weather problems across much of the northern hemisphere winter wheat growing regions limited the upside.
Reports that Russia is considering selling some of its wheat stockpile in an effort to free up storage space also put some pressure on values.
