By Terryn Shiells, Commodity News Service Canada
WINNIPEG, Jan. 16 – The ICE Futures Canada canola market ended mixed after a day of choppy activity on Friday. The nearby March contract saw the only losses, as traders attempted to narrow the inverse in the market, analysts said.
Some of the choppy activity during the day was linked to volatility in outside currency and financial markets causing traders to be ‘jittery’, according to a broker.
Canola futures found some spillover support from the gains seen in Chicago soyoil futures, and continued speculative buying interest.
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A sharply lower Canadian dollar was also bullish earlier in the day, though it was well off its lows at the close.
Weakness in Chicago soybean futures was weighing on the market, as was slowing end user demand and a pickup in farmer selling.
About 19,728 contracts changed hands on Friday, which compares with Thursday when 25,423 contracts traded. Spreading accounted for 13,192 of the trades.
Durum futures were untraded and unchanged. Milling wheat was also untraded, though the Exchange moved prices slightly higher after the close on Friday. Barley contracts moved higher, with 50 contracts traded in total.
Chicago soybean futures ended mixed ahead of the long weekend in the US on Friday. US markets will be closed for Martin Luther King Jr. Day on Monday. The two front months were up slightly, with the rest of the market ended fractionally weaker.
Generally favourable conditions for South American soybeans ahead of the upcoming harvest weighed on the market.
Expectations that US soybean acreage will increase this spring, as prices are more attractive than corn, were also bearish.
On the other side, continued steady export demand for US soybean supplies was supportive, as was spillover from the gains seen in corn.
SOYOIL futures were firmer Friday, as ongoing worries about reduced Malaysian palm oil production underpinned values, traders said.
SOYMEAL futures were softer, seeing some follow-through selling on recent losses. Spreading against soyoil was also bearish, brokers said.
CORN futures in Chicago finished stronger on Friday, as traders were covering short positions following recent losses and ahead of the long weekend. Values were six to seven cents US per bushel higher.
Signs of improving export demand for US corn were also bullish. The USDA announced a fresh export sale of more than 100,000 tonnes of US corn Friday morning.
Further support came from ideas that US farmers will plant fewer corn acres this spring due to low prices, participants said.
However, the large global supply situation and ongoing weakness in the crude oil market limited the gains.
WHEAT futures in the US ended mixed ahead of the long weekend. Chicago futures ended steady to two cents US per bushel weaker Friday, after trading higher for most of the day. Profit taking at the highs was undermining the market, analysts said.
Kansas City and Minneapolis futures were firmer, lifted by short covering on recent losses. Prices ended one to five cents US per bushel stronger.
Continued strength in the US dollar index and a lack of fresh export demand for US wheat continued to weigh on values.
Further downward pressure came from improving weather forecasts for US winter wheat growing regions.
• China plans to sell a total of 139,000 tonnes of imported wheat and 630,600 tonnes of domestic wheat currently in their state reserves next week.
• Egypt made a purchase of 240,000 tonnes of wheat from France, expected to be delivered late next month.
• EU wheat exports are expected to total 29.2 million tonnes this year, according to an estimate from a French analyst. The guess was 2.2 million tonnes higher than previous estimates.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
