By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, April 8 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Friday, with sharp gains in the Canadian dollar the biggest bearish influence.
The currency was up by nearly a cent relative to its US counterpart, which cuts into crush margins and makes exports less attractive to international customers.
Steady farmer selling contributed to the softer tone in canola, according to participants. Technical signals were another factor, as the general uptrend appears to have stalled out over the past week.
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CBOT soyoil and Malaysian palm oil futures were also down, but advances in CBOT soybeans did lend some spillover support.
The need to keep some weather premiums in the futures heading into the growing season helped limit the declines as well, especially as dryness issues persist in parts of Western Canada.
About 21,524 canola contracts were traded on Friday, which compares with Thursday when 25,208 contracts changed hands. Spreading accounted for about 16,156 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded, although wheat prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed 10 to 12 cents per bushel stronger on Friday, as investors short-covered ahead of the weekend.
Many traders expect upcoming United States Department of Agriculture data to reflect lower inventories, which supported the market.
Gains in soymeal provided some spillover support to soybeans.
Losses in the US dollar added to the bullish tone on Friday.
SOYOIL prices settled lower on Friday, tracking Malaysian palm oil.
SOYMEAL closed stronger on Friday, following nearby grain and oilseed markets.
CORN futures closed about one cent per bushel stronger on Friday, supported by gains in the crude oil market.
Corn is an ingredient in ethanol, and higher prices make blending more than mandated amounts appealing to processors.
A weaker US dollar added to the advances.
WHEAT closed two to three cents per bushel weaker on Friday, propped up by losses in the greenback.
Stronger demand for wheat added to the advances, as several countries need wheat.
– South Korea, Morocco, Algeria, Japan and Thailand all need wheat, market watchers say.
– Euronext, a European stock exchange, is working on developing a Black Sea Wheat futures contract.
