By Dave Sims, Commodity News Service Canada
Winnipeg, May 25 (CNS Canada) – Canola contracts on the ICE Futures Canada platform finished lower on Friday, as traders took profits before the weekend.
Technical selling was a feature as the July contract momentarily neared major resistance at C$540 per tonne, before backing away.
Rumours that China and the United States are closing in on a deal over trade issues had positive and negative effects for the market. On the one hand, the speculation has helped bump up prices for U.S. soybeans in recent days, which lent strength to canola. However, it has also sparked ideas that Chinese interest in canola will start to fade once they no longer have to pay a tariff for U.S. beans.
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Weakness in the Canadian dollar lent strength to canola.
Gains in U.S. soybeans also gave prices a boost.
Around 14,850 canola contracts were traded on Friday, which compares with Thursday when around 21,632 contracts changed hands. Spreading accounted for 6,026 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures ended higher on the day, taking strength from reports that the Port of Santos in Brazil was experiencing serious delays in loading soybean meal.
As well, monthly soybean crushing numbers in Argentina were at their lowest point since 2009. According to the Buenos Aires Grain Exchange, April’s crush rate was just 3.3 million tonnes, which compares to the average rate of 3.83 million.
However, prices were pressured by news that truckers in Brazil had ended their strike.
Corn futures inched higher on Friday in technical buying.
Some farmers in the Midwest took a break from planting this week due to scattered showers but will try to get back out there this weekend.
The International Grains Council lowered its forecast for the 2017/18 world corn crop to 1.04 billion tonnes.
Chicago wheat posted solid gains on Friday as weather forecasts point towards continued dry weather for the U.S. Plains.
SovEcon lowered its estimate for the wheat crop in Russia by 1.2 million tonnes to 77 million tonnes.
Nearly 80 per cent of the wheat crop in France is rated either good or excellent.
