By Jade Markus and Dave Sims, Commodity News Service Canada
Winnipeg, August 19 – ICE Futures Canada canola ended mixed—but mostly stronger—on Friday, as weakness in the Canadian dollar balanced bearish influences from US soy markets.
The loonie had lost about 0.72 per cent against its US counterpart by close on Friday, which is bullish for canola, as it makes the commodity more affordable for foreign buyers.
Market watchers say commercial demand is strong, which furthered advances.
However, the effects of those bullish features was limited by losses in the US soy complex.
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Chicago Board of Trade soybeans, soymeal and soy oil declined with pressure from favourable weather in the US Midwest.
About 16,031 canola contracts traded on Friday, which compares with Thursday when 15,942 contracts changed hands.
Milling wheat, durum and barley futures were all untraded and unchanged.
Corn futures finished one to two cents per bushel higher Friday as investors covered shorts ahead of the weekend.
Values were range-bound as investors waited for the results of the eastern portion of the Pro Farmer crop tour which begins in the US next week. However, South Africa is reportedly set to nearly double its white-corn acreage in 2017, which was slightly bearish.
SOYBEAN futures softened, falling five to 10 cents per bushel as rain fell across the US Midwest, replenishing crops in what is already regarded as a bumper crop year. Temperatures have also been milder which was beneficial for the plants, said an analyst.
The USDA has announced that 261,000 tonnes of soybeans were sold to unknown buyers.
The most-active November contract momentarily dipped below major support (US$10 per bushel) but regained its footing to finish above that mark.
Soyoil finished five points lower, tracking losses in soybeans.
SOYMEAL futures finished lower.
Wheat futures on the Chicago Board of Trade finished slightly higher on Friday. For the most part, values stayed within a 10 cent per bushel range as investors squared positions ahead of the weekend.
Reduced wheat production in France has prompted the country to look at milling supplies from Lithuania and Great Britain, according to a report.
Russian wheat exports look to be higher than last year, which was bearish. According to the country’s Ag Ministry, exports will likely be 25 to 30 million tonnes this crop year, which compares to 24 million last year.
– The wheat harvest in North Dakota has been slowed by wet weather, according to reports.
– Since the start of the 2016/17 season, Ukraine has exported nearly 5 million tonnes of grains, according to government data.
