By Jade Markus and Dave Sims, Commodity News Service Canada
Winnipeg, Oct. 23 – THE ICE Futures Canada canola market finished stronger in range bound trading Friday, receiving a boost from the Canadian currency.
The Canadian dollar was weaker relative to its US counterpart, which made canola more attractive to foreign buyers.
Domestic crushers remain busy while there is talk that Canadian exports are ongoing.
“China is buying very heavily but they aren’t pushing prices very far because there’s lot of supply (oilseeds in general) to meet their demand,” an analyst noted.
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The most active January contract continues to find support at C$482 per tonne.
The unwinding of spreads was also a feature and may have helped the market go up, said a trader.
However, losses in US soybeans and the vegetable oil market dragged on values.
The advancing US harvest also put pressure on prices while the bias has tilted to the downside.
A total of 36,427 canola contracts were traded on Friday, which compares with Thursday when 27,614 contracts changed hands.
Milling wheat, barley and durum were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed one to five cents per bushel lower Friday as harvest in the US progressed.
Famers in the US Midwest are expected to get a considerable amount of harvesting done this weekend, which is bearish as it would add to domestic stocks.
Prices were further pressured by analyst projections that the United States Department of Agriculture would revise soybean yields upward in its November report.
Forecasts for beneficial rain in Brazil added to the bearish tone.
SOYOIL prices settled lower on Friday.
SOYMEAL closed lower on Friday, following nearby markets.
CORN futures closed one cent per bushel stronger on Friday on investor short covering, and a late sale just before the market closed helped corn find support.
An unknown buyer purchased 130,000 tonnes of corn, which was highly bullish for the commodity as it has faced a lack of demand as of late.
WHEAT closed half a cent per bushel lower to half a cent per bushel higher on Friday, as weather adversity in competing growing regions supported prices, but underlying issues remained.
Analysts say about a third of the world’s winter wheat has been planted into dry soil, which could negatively affect next year’s production.
But a global oversupply and the lack of competitiveness of US wheat, especially on the tail of a fresh rally from the US dollar, pressured prices.
– France is estimated at about 58 per cent finished its soft wheat seeding, which is about eight per cent more than this time last year.
– Ethiopia has tendered for one million metric tonnes of option origin milling wheat for shipment within four months.
