By Dave Sims, Commodity News Service Canada
Winnipeg, September 11 – THE ICE Futures Canada canola market posted gains on Friday, shrugging off a bearish USDA report to finish higher before the weekend.
Canola initially took a dive to the lowside when today’s USDA report came out, which predicted larger than expected soybean production in the US. However it seems farmers didn’t want to sell at the prices offered and speculators brought the market up at the close, a trader said.
Commercial buying was also on the increase which lent support to prices.
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Reports of frost in Western Canada underpinned the market while gains in Malaysian palm oil were bullish.
Seasonal harvest pressure was a bearish presence though, along with forecasts of good harvesting weather across parts of Western Canada over the next few days.
18,594 canola contracts traded on Friday, which compares with Thursday when around 22,254 contracts changed hands. Spreading accounted for 6,928 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN prices finished relatively unchanged Friday, despite a new report from the USDA that hiked production numbers for the year.
In its monthly report, the USDA predicted soybean production in the US would reach 3.935 billion bushels with an average yield of 47.1 bushels an acre. That was below the August forecast which pegged bean production at 3.916 billion bushels with an average yield of 46.9 bushels an acre.
Profit-taking was a feature at the close.
SOYOIL futures in Chicago ended lower tracking crude oil, with spreading against soymeal a feature.
SOYMEAL futures ended lower on ideas of reduced demand from livestock owners who now have more corn to choose from.
Wheat futures on the Chicago Board of Trade posted modest gains to finish the week, seeing some light buying despite federal predictions of larger-then-expected US reserves.
The USDA pegged US stockpiles of wheat at the conclusion of the 2015-16 season at 875 million bushels, which was above analysts’ expectations heading into the report.
The department also lowered its outlook for US wheat exports, which limited the gains.
Corn futures on the Chicago Board of Trade hit a two-week high Friday, after the USDA predicted a smaller US crop. Excess rains in much of the Midwest this summer has hurt the quality of this year’s crop, participants said.
One analyst said “another bushel or two” could be trimmed from upcoming yield estimates too, because of the excess moisture.
The 2015 corn crop is still expected to be the third largest on record in the US.
– Wheat millers in Brian may be able to use home-grown
supplies this year as the quality there has surged according to
a report.
– Russian wheat exports could increase by 5 to 10 million
tonnes within the next five years.
