By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
The ICE Futures Canada canola market ended mixed on choppy trade Friday as traders positioned themselves before the weekend. The near-term values were lower with profit-taking while the more deferred contracts enjoyed strong buying from commercials who were looking for supplies after being unable to acquire enough from producers.
Activity in the May contract was a feature as line companies gave themselves more time to make sales.
Speculators were also on the buy side, adding to their large, long positions.
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The Canadian dollar was slightly weaker against its American counterpart which lent some support to values while spillover strength also came from European rapeseed futures and soymeal.
However, weakness in US soybeans and soyoil was bearish while the large South American soybean crop also undermined values.
Around 26,440 canola contracts were traded on Friday, which compares with Thursday when around 27,245 contracts changed hands.
Spreading accounted for 18,774 of the contracts traded.
Milling wheat, barley and durum were all untraded.
SOYBEAN futures at the Chicago Board of Trade were down one to four cents per bushel on Friday, with positioning ahead of the weekend, poor export demand, and favourable South American crop prospects behind some of the weakness.
Forecasts calling for some timely rains in Brazil over the next week accounted for some of the selling pressure in beans as the prospects of a large South American soybean crop are already cutting into the demand for US supplies, according to participants.
Poor weekly USDA export sales data bore that out, with only a net 14,100 tonnes of US beans sold during the past week.
Continued strength in the US dollar internationally was also bearish for beans, as it makes US priced goods more expensive for end users.
SOYOIL futures were down on Friday, as losses in crude oil and Malaysian palm oil weighed on values.
SOYMEAL futures were up on Friday, as solid export demand and spreading against soyoil provided support.
CORN futures in Chicago were up by two to four cents per bushel on Friday, boosted by some solid weekly export sales.
The USDA reported weekly sales of 2.2 million tonnes, which would mark the largest weekly sales during the crop year to date. Cheaper freight rates were said to be making US corn more competitive, according to some analysts.
However, the strong US dollar and uncertainty in the ethanol sector did temper the advances. The good South American weather was also bearish for corn.
WHEAT futures in Chicago were down three to four cents per bushel, with the strong US dollar behind most of the weakness. Kansas City hard red winter wheat futures were also down slightly on the day, but Minneapolis spring wheat contracts were steady to higher in most months.
Favourable weather conditions across the US winter wheat belt contributed to the declines in the winter wheat markets, with much needed moisture reported in many regions.
However, the losses were tempered by relatively solid export demand as weekly sales beat expectations. The renewed tensions in Ukraine were also keeping some caution in the wheat market.
– Algeria has tendered to purchase 350,000 tonnes of wheat, most likely from France and Germany, according to reports from the North African country.
– Russia’s winter wheat crops went into the ground in poorer conditions compared to the previous year, according to officials in the country. However, moderate winter temperatures and adequate snow cover remain favourable for the time being.
– In an effort to shore-up domestic supplies the Ukrainian government and exporters in the country are working on an agreement that would limit wheat exports from the country to 1.2 million tonnes during the first six months of 2015.
