By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, August 11 – THE ICE Futures Canada canola market finished mostly higher on Thursday, tracking advances in the US soy market along with some chart-based trading.
Concerns about excess water in parts of Western Canada were supportive.
Crude oil was also higher which was bullish.
Canola continues to be viewed as a bargain, relative to other oilseeds, according to a trader in Winnipeg.
“There’s been rumors of possible export business here the past couple of days,” he said.
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However, investors were positioning themselves ahead of Friday’s World Agricultural Supply and Demand estimates. Analysts generally agree that estimates for the US soybean crop will be increased.
The Canadian dollar was half a cent stronger relative to its US counterpart, which made canola less desirable to domestic crushers and outside buyers.
Losses in European rapeseed futures and Malaysian palm oil put pressure on prices.
Around 14,540 canola contracts were traded on Thursday, which compares with Wednesday when around 18,319 contracts changed hands. Spreading accounted for about 7,264 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed three to five cents per bushel stronger on Thursday, supported by strong demand.
Soybean sales outpaced analyst expectations, which is bullish, especially as the United States Department of Agriculture (USDA) will release crop data on Friday.
Traders say strong demand will be needed in order to move through high domestic stockpiles.
Rain in parts of the US Midwest capped advances on Thursday.
SOYOIL prices closed higher on Thursday.
SOYMEAL closed mostly weaker on Thursday.
CORN futures were unchanged to about one cent per bushel weaker on Thursday as traders took positions ahead of Friday’s USDA reports.
Despite losing ground on the week, US crop conditions are mostly good, which indicates a big crop is coming.
However, strong export demand limited losses. Net sales in the week ending August 4 were up 80 per cent from the previous week and 34 per cent from the prior four-week average, the USDA said.
WHEAT closed one to five cents per bushel lower on Thursday, also pressured by the expectation for a large upcoming crop to be reflected in Friday’s data.
Market watchers expect the data to show high domestic stockpiles, which is bearish.
The ongoing winter wheat and spring wheat harvests added to the declines.
– Saudi Arabia is tendering for 600 thousand tonnes of milling wheat, market watchers say.
– Wheat export sales reported by the USDA totalled 607,600 metric tonnes for delivery in 2016/2017.
