By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Oct. 28 (CNS Canada) – ICE Futures Canada canola contracts were up on Friday, hitting levels not seen since the middle of June as persistent Canadian harvest delays provided support.
An estimated 20 per cent of the canola crop is still in the fields, with the prospects for salvaging some of the unharvested crop diminishing with each passing day. As a result, production is unlikely to live up to earlier expectations and canola will likely need to be rationed going forward.
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Chart based buying was also supportive, as nearby technical signals remain pointed higher and fund traders continued to add to their long positions, according to traders.
Gains in Chicago Board of Trade soyoil added to the firmer tone in canola. However, soybeans were down on the day.
Profit taking at the highs and expectations for a large
US soybean crop also kept the gains in check.
About 30,420 canola contracts were traded on Friday, which compares with Thursday when 31,889 contracts changed hands. Spreading was a feature, accounting for 17,628 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although some prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade were down by seven to 13 cents per bushel, with profit-taking ahead of the weekend behind some of the declines.
Soybeans hit their highest levels in two months earlier in the week on the back of solid export demand.
However, with no fresh news on the export front Friday, buyers were back to the sidelines and the record-large production forecasts took precedence in the markets once again.
Weather conditions look mostly favourable across the Midwest for farmers to keep making good progress.
SOYOIL futures were up on Friday.
SOYMEAL futures were down on Friday.
CORN futures in Chicago were down by two to three cents per bushel on Friday, as the good US harvest weather weighed on prices ahead of the weekend.
The US corn crop is thought to be about three quarters harvested.
Chart-based selling was another feature, as the corn market backed away from the high end of its nearby trading range.
WHEAT futures in Chicago were down by five to six cents per bushel on Friday.
Ample world supplies continued to keep the wheat market under pressure, although there were also still enough weather concerns in some parts of the world to provide support.
Higher quality, high protein wheat may be in short supply this year, which helped the Minneapolis futures see some relative strength.
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