By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, Oct. 14 (CNS Canada) – ICE Futures Canada canola contracts were up for the sixth-straight session on Friday, as harvest-delaying snow and a rally in Chicago Board of Trade soyoil provided support.
Environment Canada issued weather warnings and alerts across much of the central and northern growing regions of Alberta and Saskatchewan, with up to 15 centimetres of snow forecast in some areas. The latest snow heightened concerns over what will happen to the final fifth of the canola crop still left to be harvested.
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Speculators were noted buyers, covering short positions and moving to the long side. Domestic crushers were also said to be showing some demand, as crush margins remain favourable.
Sharp gains in CBOT soyoil were also supportive, with recent strength in Malaysian palm oil lending support to vegetable oil markets across the board.
However, the Canadian dollar was also stronger on Friday, which put some pressure on canola.
About 39,494 canola contracts were traded on Friday, which compares with Thursday when 62,363 contracts changed hands. Spreading accounted for 25,218 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed five to six cents per bushel higher on Friday, as weekly export sales were above analyst expectations.
Net sales of 1.4 million metric tonnes for 2016/2017 were reported by the United States Department of Agriculture for the week ending October 6.
Strong demand from China was also a feature, market watchers say.
However, US harvest progress limited gains.
SOYOIL prices were higher on Friday, following advances in Malaysian palm oil.
SOYMEAL closed weaker on Friday.
CORN futures were two to five cents per bushel higher on Friday, supported by investor short covering.
Market watchers say traders are watching technical signals for now.
However, bearish export numbers from the USDA limited losses.
In the week ending October 6, net sales of corn totalled 873,400 metric tonnes for 2016/2017, which were down 58 per cent from the previous week and 18 per cent from the prior four-week average.
WHEAT closed two to five cents per bushel stronger on Friday, buoyed by slightly stronger export sales.
Wheat sales in the week ending October 6 totalled 491,000 metric tonnes for delivery in 2016/2017, which was up 30 per cent from the previous week and three per cent from the previous average, the USDA said.
Investor short covering was also a feature ahead of the weekend.
– Thailand has bought 55,000 metric tonnes of US wheat to be delivered in February, market watchers say.
– Saudi Arabia has put out a tender for 595 metric tonnes of hard wheat, analysts say.
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