By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, Nov. 17 (CNS Canada) – ICE Futures Canada canola futures were higher on Thursday, as speculators and exporters both remained on the buy side.
Uncertainty over the size of this year’s Canadian canola crop added to the firmer tone, as traders continue to try and get a better handle on just how much will be left unharvested.
A turn higher in Chicago Board of Trade soybeans and weakness in the Canadian dollar contributed to the firmer tone in canola, as both of those markets had been moving in opposite directions in earlier activity.
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However, CBOT soyoil remained pointed lower at the close, which kept a lid on canola.
Crush margins remain relatively strong, but have still lost over C$20 per tonne over the past week, which likely limited some domestic processor demand, according to participants.
About 23,300 canola contracts were traded on Thursday, which compares with Wednesday when 16,004 contracts changed hands. Spreading accounted for 16,536 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed about four to six cents per bushel stronger on Thursday.
The market was supported by strong demand from China, reflected in weekly export sales reported by the United States Department of Agriculture.
Export sales were within the range of analyst expectations, with sales in the week ending November 10 up 51 per cent from the previous week, but down 23 per cent from the previous four-week average, the USDA said.
However, spillover weakness from the nearby soy oil markets limited the upside.
SOYOIL prices closed lower on Thursday, tracking declines in Malaysian palm oil.
SOYMEAL closed higher on Thursday.
CORN futures were two to three cents per bushel stronger as export sales beat out analyst expectations on Thursday.
Export sales in the week ending November 10 were up 35 per cent from the previous week and 47 per cent from the prior four-week average, the USDA said.
Data shows ethanol production increased last week, but stocks declined, which further underpinned corn.
WHEAT closed five to six cents per bushel higher, as export sales were at the high end of analyst expectations.
Sales in the week ending November 10 were down 22 per cent from the previous week, but up 11 per cent from the prior four-week average, the USDA said.
Dry weather in select US winter wheat growing areas further underpinned the market.
