By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, Oct. 9 – ICE Futures Canada canola contracts settled with small losses in most months on Friday, but were well off their session lows as the market saw some consolidation ahead of the Canadian Thanksgiving long weekend.
The most active November contract had lost as much as five dollars per tonne at one point during the session, but was only down by fifty cents at the close as a bullish reaction to monthly supply/demand data released by the USDA gave CBOT soybeans a boost.
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Steady farmer selling contributed to the relatively softer tone in canola, although weather related delays to the final stages of this year’s harvest in some parts of the Prairies did provide some underlying support.
About 23,639 canola contracts were traded on Friday, which compares with Thursday when 16,198 contracts changed hands. Spreading accounted for 13,462 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed two to four cents per bushel higher despite new data surpassing analyst expectations.
However, farmers don’t want to sell at current levels, analysts say, which is bullish for the commodity.
SOYOIL prices settled lower to unchanged on Friday. Soyoil was tracking Malaysian palm oil, which closed lower, but was buoyed somewhat by neighbouring markets.
SOYMEAL closed higher on Friday following soybeans.
CORN futures closed four to eight cents per bushel weaker Friday as the USDA raised its estimates for the commodity.
The USDA expects corn production to hit 13.555 billion bushels, and said producers would be getting about 168 bushels an acre.
The news was especially bearish as analysts had predicted 13.461 billion bushels and yields of 166.4 bushels an acre due to rainy weather earlier in the growing season.
WHEAT futures in Chicago closed two cents per bushel weaker Friday as the USDA report came in above analyst expectations.
However, the estimate for US wheat production was less than in September.
The USDA pegged production at 861 million bushels, down from 875 million in September, but analyst estimates ahead of the report came in at 821 million bushels.
Losses were minimized somewhat as emerging-market currencies gained.
Currency rallies could help US wheat be more competitive globally.
– The latest USDA projection pegs Australia’s wheat production at 26 million tonnes.
– Algeria has tendered for 675 million metric tonnes and Egypt tendered for 235 thousand metric tonnes, market watchers say.
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