By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, November 10 – THE ICE Futures Canada canola market finished higher on Thursday, tracking gains in the US soy complex.
Gains in vegetable oil were also bullish for canola.
Despite a recent wave of warm weather, farmers in Western Canada are making slow progress in harvesting the remainder of the canola crop, according to a trader in Winnipeg.
“Harvest progress is still a struggle, the crops are either frosty overnight or damp in the morning so guys don’t really get going until noon and then they shut down at five o’clock,” he said.
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He adds the technical picture also favours canola.
“The chart structure looks positive which may prompt spec buying,” he said.
However, losses in crude oil weighed on canola.
Prospects for the South American soybean crop are said to be very good.
Traders were also positioning themselves ahead of Remembrance Day on Friday. Canadian markets will be closed for the day.
Milling wheat, barley and durum were untraded.
About 18,149 canola contracts traded on Thursday, which compares with Wednesday when 20,175 contracts changed hands. Spreading accounted for about 8,502 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed seven to eight cents per bushel stronger on Thursday, gaining back some ground after yesterday’s sharp declines.
Spillover support from the Malaysian palm oil and nearby soy oil markets underpinned prices.
However, export numbers came in below expectations, which limited advances.
Soybean sales reported by the United States Department of Agriculture in the week ending November 3 totalled 1,001,800 metric tonnes for 2016/2017, and were down 60 per cent from the previous week and 49 per cent from the prior four-week average.
SOYOIL prices advanced on Thursday, underpinned by overnight strength in Malaysian palm oil. The palm oil market has reached fresh highs on lower production, which is bullish.
SOYMEAL closed unchanged to stronger on Thursday.
CORN futures were about two to three cents per bushel higher on Thursday, propped up by gains in soybeans.
Export sales were within the range of analyst expectations.
Net sales in the week ending November 3 totalled 1,233,800 metric tonnes for 2016/2017, and were down 16 per cent from the previous week, but up 19 per cent from the prior four-week average, the USDA said.
The expectation for lower output from France added to the upside.
However, projections for increased production from Brazil limited the upside on Thursday.
WHEAT lost about two to three cents per bushel on Thursday, pressured by high world ending stocks reported by the USDA on Wednesday.
Speculative selling was also a feature.
However, strong export sales limited losses.
In the week ending November 3, net sales totalled 769,600 metric tonnes for delivery in marketing year 2016/2017, and were up noticeably from the previous week and 63 per cent from the prior 4-week average, the USDA said.
