By Terryn Shiells and Dave Sims, Commodity News Service Canada
WINNIPEG, Dec. 19 – ICE Futures Canada canola contracts ended mixed to lower on Friday, after a day of pre-weekend and pre-holiday choppy activity.
The market remained in a narrow range throughout the day, lacking any big drivers, according to analysts.
Values were also consolidating as the market seems to have reached the top end of its range, brokers added.
Some of the softness was linked to spillover pressure from the declines seen in Chicago soybean and soyoil futures.
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However, end user demand remains steady for Canadian canola, which was supportive, as was the downswing in the value of the Canadian dollar.
Further support came from a general lack of farmer selling, as they wait for the new tax year.
About 20,770 contracts changed hands on Friday, which compares with Thursday when 31,739 contracts traded. Spreading was a feature of the activity, accounting for 15,146 of the trades.
Durum and barley futures were untraded and unchanged. Milling wheat was also untraded, though the Exchange moved prices sharply lower following Friday’s close.
CORN futures in Chicago ended mostly lower Friday; with the most active March contract half a cent weaker. Values were feeling spillover pressure from the sharp decline in US wheat prices, said a trader.
US corn acres in 2015 will likely reach 88.0 million acres, according to a report from Informa Economics. That is roughly 320,000 fewer acres than their previous estimate, released last month.
Despite large Chinese corn stocks, there are expectations the US will begin shipping more corn exports in 2015, brokers added.
SOYBEAN futures in Chicago fell three to four cents per bushel lower Friday, on the back of a forecast by Informa Economics that predicts US farmers will plant a record 88.8 million soybean acres in 2015.
Bayer’s Liberty Link 55 soybeans — engineered to withstand herbicide capable of killing weeds that have grown resistant to widely used Roundup spray, has received Chinese approval, according to a report.
The weather outlook for the South American soybean crop continues to look favourable. One trader said he could usually find a trouble spot in planting areas that big, but so far the conditions and weather look favourable all over.
SOYOIL futures were eight points higher on good demand and limited selling on the other side, according to a report.
SOYMEAL futures ended slightly lower in sympathy with soybeans.
WHEAT futures in Chicago fell 19 to 23 cents per bushel Friday and 17 cents per bushel on the Kansas City Board of Trade as US producers sought to cash in on high prices by selling supplies, while some investors took profits.
US wheat suppliers may not profit as much as initially thought by Russia’s export slowdown due to the strength of the US dollar on the international market, said participants.
An increase in wheat sales from Australian producers, as they take advantage of recent strong prices, was also bearish, according to a report.
According to Informa Economics, US wheat acres will total 56.6 million acres in 2015, slightly below the 56.8 million planted the year prior.
• US shippers and dockworkers have resumed contract negotiations at 29 US West Coast ports, according to a report. The dockworkers’ latest contract expired on June 30.
• European exporters are expected to be the main beneficiaries of Russia’s withdrawal from International Grain Markets, a trader said, citing favourable exchange rates compared. US Grain is generally priced out of Russian markets.
• Bangladesh has reportedly offered a tender for 50,000 tonnes of wheat, according to a report.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.