By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, Nov. 6 – ICE Futures Canada canola contracts were up on Friday, recovering from Thursday’s declines as a weaker Canadian dollar, gains in CBOT soyoil, and speculative buying interest all provided support.
The Canadian dollar was down by three-quarters of a cent relative to its US counterpart, which makes exports more attractive and also helps boost domestic crush margins.
A lack of significant farmer selling contributed to the firmer tone in canola, although end user demand on the other side was also on the quiet side, according to participants.
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Canola remains range-bound from a chart standpoint, after seeing an inside trading day.
About 9,069 canola contracts were traded on Friday, which compares with Thursday when 14,123 contracts changed hands. Spreading accounted for 3,890 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed three to five cents per bushel higher Friday due to investor short-covering after sharp losses on Thursday.
Soybeans had been supported in previous sessions due to the expectation of strong demand from China for the oilseed.
But disappointing export data from the USDA caused prices to tumble.
However, positioning ahead of USDA supply and demand report due out next Tuesday kept prices afloat.
SOYOIL prices settled stronger on Friday, following soybean futures.
SOYMEAL closed mixed on Friday.
CORN futures closed a quarter of a cent per bushel higher to one cent per bushel weaker on Friday as a rally in the US dollar pressured prices.
The US dollar touched a seven-month high on Friday as job growth data out of the country supported the currency.
A stronger US dollar makes the country’s commodities less affordable, which is bearish.
WHEAT closed three cents per bushel lower to three cents per bushel higher on Friday, also pressured a stronger US dollar.
Wheat prices had been plagued by a lack of demand in recent sessions and a stronger greenback makes US wheat even less affordable to foreign buyers.
Beneficial rain in winter wheat growing regions, improving the outlook for next year’s crops, further added to the bearish tone.
– Russia exported 13.3 million metric tonnes of wheat in the first nine months of 2015, analysts say, which is less than in 2014.
– Reports out of India say the area near the country’s capital, New Delhi, is falling behind schedule in seeding.
