By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Oct. 12 (CNS Canada) – ICE Futures canola contracts were mixed at Friday’s close, although the bias was lower in the most active nearby contracts.
Gains in Chicago Board of Trade soybeans and soyoil provided spillover support throughout the day, but canola failed to see much traction to the upside.
Spreading between soybeans and canola contributed to the declines, with investors buying beans and selling canola, according to a trader.
Slow export demand and steady farmer deliveries into the commercial pipeline also weighed on prices.
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In addition, forecasts calling for better harvest weather in parts of Alberta and Saskatchewan over the next two weeks were bearish for canola.
About 25,786 canola contracts traded, which compares with Thursday when 19,308 contracts changed hands. Spreading accounted for 18,914 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, as volatility in the global stock markets had investors looking for somewhere to park their money. Commodities, including soybeans, saw some broad-based buying interest as a result.
Follow-through strength after Thursday’s bullish reaction to the latest United States Department of Agriculture supply/demand estimates was also supportive.
However, weekly U.S. soybean export sales of about 440,000 tonnes came in well below trade guesses, which weighed on values.
CORN futures were also supported by speculative buying on Friday.
Weekly U.S. corn export sales of about a million tonnes were in line with trade estimates, but well off both the year ago and week ago readings.
France’s Strategie Grains raised its estimate for European corn production this year to 59.4 million tonnes, up a million tonnes from last month.
WHEAT futures were also supported by the broad-based speculative buying in the commodity markets, with declining production estimates out of drought-stricken Australia also providing support.
However, weekly U.S. wheat export sales were disappointing, with the 87,000 tonnes of business well below even the lowest trade guesses.
