By Phil Franz-Warkentin and Erin DeBooy, Commodity News Service Canada
Winnipeg, Aug. 5 (CNS Canada) – ICE Futures Canada canola contracts were higher on Friday, as strength in Chicago Board of Trade soybeans and weakness in the Canadian dollar both provided support.
Weather concerns in some parts of Western Canada, with excess moisture cutting into production prospects, contributed to the firmer tone ahead of the weekend, according to traders.
However, canola settled well off its session highs, as overnight losses in Malaysian palm oil and a turn lower in CBOT soyoil put some pressure on values. A lack of significant end user demand, given the looming harvest and expectations for a large crop, also kept the gains in check.
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About 19,190 canola contracts were traded on Friday, which compares with Thursday when 12,292 contracts changed hands. Spreading accounted for 6,380 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although wheat prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade strengthened on Friday, rising just above 1 cent per bushel.
Daily highs for the September contract reached for the 10 dollar mark with news of strong export demand, but didn’t quite hit the mark before closing at US$9.88 per bushel.
Private exporters struck deals to sell 498,000 tonnes of US soybeans to China for delivery in the new crop marketing year starting September 1, according to the USDA.
It was the eighth trading day in a row the USDA confirmed a soybean deal with China or unknown destinations, supporting prices.
SOYOIL prices closed slightly lower on Friday.
SOYMEAL closed stronger on Friday.
CORN futures rose more than 3 US cents on Friday, with the September contract settling just under daily highs at US$3.2425 per bushel.
Speculative buying ahead of the weekend supported prices, as well as reports of corn crops yielding 168 bushels per acre, lower than the recently anticipated 175 bushels per acre.
Lack of farm selling contributed to the firmer tone.
WHEAT closed higher on Wednesday, rising just over 12 cents per bushel for the September contract, settling at US$4.16 per bushel.
South Korea announced it will now allow new purchases of US-grown wheat, ending a brief suspension, according to the US Wheat Associates, giving a boost to wheat prices.
Reports of bad crop conditions in France continue, while rumours that Germany and Poland crops might be in similar condition add additional support.
-Canada exported 375,500 tonnes of wheat for the week ending July 31, according to the Canadian Grain Commission.
– Winter wheat in the UK is showing promise, with first cut samples showing yields 10 to 20 per cent above average, according to reports.