By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, November 12 – THE ICE Futures Canada canola market corrected higher Thursday, in the wake of Tuesday’s market selloff. The Canadian market was closed Wednesday for Remembrance Day.
Canola took strength from gains in US soybeans and soyoil.
The January contract started the day below the key support level of C$470 per tonne but has now settled well above it.
The Canadian dollar was slightly weaker relative to its US counterpart which was supportive for canola.
Read Also
North American Grain/Oilseed Review: Canola rises, down day for grains
Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange were higher on Friday despite weakness in most comparable…
The Argentinean government is reportedly considering lowering its export tax on soybeans, which could result in large
supplies being dumped onto the market.
Malaysian palm oil production was record large in October, which was also bearish.
Milling wheat, barley and durum were all untraded.
A total of 29,380 canola contracts were traded on Thursday, which compares with Tuesday when 27,913 contracts changed hands. Spreading accounted for 15,818 of the contracts traded.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade closed one to four cents per bushel stronger Thursday on increased demand from China.
China has booked 300,000 metric tonnes of US soybeans, which is bullish, the US Department of Agriculture said on Thursday.
The news caused some gains to return to the market, which had declined sharply after a bearish supply and demand report from the USDA.
SOYOIL prices settled stronger on Thursday, tracking Malaysian palm oil.
SOYMEAL closed lower on Thursday following nearby grain and oilseed markets.
CORN futures closed a quarter of a cent lower to half a cent higher on Thursday, pressured by a lack of fresh news. Analysts say the corn market is stuck in a narrow trading range.
However, a tender for 55,000 tonnes of US corn for delivery in March from South Korea supported far contracts.
WHEAT closed two to three cents per bushel higher on Thursday as concern over Ukraine’s crop kept nearby contracts supported.
Dryness in Ukraine’s growing region has been comparable to drought in 2011, which resulted in poor yields, according to reports from the country.
Dryness in competing growing regions is bullish for US commodities.
However, Iran plans on stopping wheat imports, due to high domestic stocks, and plans on exporting more durum, which put a lid on gains.
– Japan bought 119,415 tonnes of US, Canadian and Australian wheat, market watchers say.
– US growing regions that have seen heavy winds and snow over the course of the week have a better outlook moving forward.
