By Phil Franz-Warkentin, MarketsFarm
Winnipeg, Aug. 30 (MarketsFarm) – The ICE Futures canola market was stronger on Friday, taking some direction from Chicago Board of Trade soyoil as traders adjusted positions ahead of the long weekend.
Markets will be closed Monday for Labour Day.
Chart-based buying contributed to the gains, although the November contract ran into resistance around C$450 per tonne.
Large old crop supplies and improving growing conditions over the past month tempered the advances.
Statistics Canada estimated canola production this year at 18.5 million tonnes in a report out earlier in the week. That would be about 2 million tonnes down from the previous year, but most market participants expect actual production will still end up at least above 19 million tonnes.
Read Also
ICE canola retreats
Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange took a step back of Wednesday morning amidst mixed sentiment…
About 10,978 canola contracts traded on Friday, which compares with Thursday when 7,341 contracts changed hands. Spreading accounted for 4,476 of the contracts traded.
SOYBEANS held onto small gains on Friday, but settled well off their highs for the day as traders squared positions before the month-end.
Talk that the United States and China may be looking resume trade negotiations in September was somewhat supportive, as tensions have eased somewhat over the past week.
Concerns over cool and wet Midwestern weather forecasts were also supportive, with slow crop development raising concerns over possible frost damage before the harvest.
CORN held near unchanged throughout the day, settling with small losses as spillover selling from declines in wheat weighed on values.
Uncertainty over a proposed biofuels plan from U.S. President Donald Trump kept some caution in the corn market ahead of the weekend.
Trump tweeted on Thursday that a “giant package” was coming on ethanol that would make farmers happy. However, details backing up that promise remain to be seen.
WHEAT futures were weaker on Friday, with heavy deliveries against the September contracts dragging on the markets.
The advancing U.S. spring wheat harvest and ample world supplies added to the softer tone in wheat.
