By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, December 11 – THE ICE Futures Canada canola market finished higher Friday, riding a groundswell of support from the Canadian dollar.
The loonie was half a cent lower relative to its US counterpart which typically makes canola more attractive to out-of-country buyers.
Slow-farmer selling was supportive along with continued interest from crushers.
Malaysian palm oil and European rapeseed futures were both higher which helped to underpin the market.
Canola is very affordable, compared to other vegetable oils, which was bullish, traders said.
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However, US soybeans and soyoil were both lower which limited the gains.
Commercial buying is lukewarm and shows no signs of pushing prices higher, according to a report.
Canola ran into some early technical resistance on the charts as well, an analyst said.
Milling wheat, barley and durum were untraded.
Around 25,412 canola contracts were traded on Friday, which compares with Thursday when around 29,694 contracts changed hands. Spreading accounted for 15,814 of the contracts traded.
Milling wheat, barley and durum were untraded.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade closed seven and a half to eight and a half cents per bushel weaker on Friday as traders took profits ahead of the weekend.
The expectation of increased competition in the soybean market also weighed on prices, analysts say, as Argentina’s president is expected to reduce export taxes on the commodity.
Data from Brazilian industry-group Conab further added to the bearish tone.
Conab expects Brazil’s oilseed crop will reach 102.5 million metric tonnes this season.
SOYOIL prices settled weaker on Friday.
SOYMEAL closed weaker on Friday, following nearby markets.
CORN futures closed three to four cents per bushel weaker on Friday due to investor profit-taking.
Market watchers say the stronger US dollar was also a feature, as it makes US commodities less attractive to foreign buyers.
Weaker crude oil prices were also bearish for corn, as it can be processed into ethanol.
WHEAT closed two to five cents per bushel weaker on Friday as wetter conditions in the US weighed on prices.
Rain improves the outlook for winter wheat crops in the country, which is bearish.
Traders also returned to the same bearish story of high global supplies and low demand on Friday.
– Spring wheat basis levels have turned 20 to 30 cents lower as movement has been stronger.
– The outlook for Ukraine’s winter wheat crop has improved, according to reports out of the country, due to favourable weather.
