By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Dec. 7 (CNS Canada) – ICE Futures canola contracts weaker in the most active months at Friday’s close, after trading to both sides of unchanged in choppy activity.
Strength in the Canadian dollar accounted for some of the selling pressure in canola, according to participants. The currency was up by roughly half of a cent relative to its United States counterpart in response to a favourable domestic jobs report.
Ample canola supplies in the commercial pipeline also kept canola under pressure. Farmer deliveries were up in the latest weekly Canadian Grain Commission report, while exports were on the low side.
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However, gains in Chicago Board of Trade soybeans provided some spillover support.
Yesterday’s production estimate from Statistics Canada also helped underpin the futures, as the 2018-19 Canadian canola crop of 20.3 million tonnes was about a million tonnes below the previous year’s level.
About 29,759 canola contracts traded, which compares with Thursday when 34,120 contracts changed hands. Spreading accounted for 23,516 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Friday as solid export demand provided support.
The weekly United States Department of Agriculture export sales report showed soybean sales at the higher end of trade estimates, at 890,000 tonnes.
Speculative buying contributed to the firmer tone, as soy traders adjusted positions ahead of the weekend.
However, expectations for large South American crops tempered the upside.
Uncertainty over trade relations with China also kept some caution in the market, as there has yet to be any concrete export news despite the tentative truce announced last weekend.
The USDA releases its monthly supply/demand estimates on Dec. 11, and pre-report positioning was another feature.
CORN futures were also supported by solid exports to move higher. Weekly U.S. corn exports came in at nearly 1.2 million tonnes. Mexico and Jaapn were both noted buyers.
A rally in wheat also provided some spillover support, although the corn market lagged to the upside.
WHEAT futures were boosted by good export news, as U.S. wheat is finally competitively priced on the world market.
Weekly U.S. wheat exports beat expectations at 711,000 tonnes. The USDA also announced additional private export sales of 224,000 tonnes to unknown destinations this morning.
