North American Grain/Oilseed Review: Canola up ahead of long weekend

By Phil Franz-Warkentin, MarketsFarm

WINNIPEG, July 31 (MarketsFarm) – The ICE Futures canola market was stronger on Friday, testing fresh six-month highs once again as speculative traders remained on the buy side.

Gains in Chicago soyoil and solid export demand also provided some support.

However, resistance held to the upside, with the November contract unable to move above C$494 per tonne. Farmer selling was likely coming forward at the highs, according to participants.

A firmer tone in the Canadian dollar and relatively favourable Prairie crop conditions put some pressure on values.

Positioning ahead of the long weekend was another feature. The ICE canola market will be closed Monday, Aug. 3, for Terry Fox Day. Many other Canadian markets will also be closed for civic holidays. Markets in the United States will trade their usual hours.

About 17,103 canola contracts traded on Friday, which compares with Thursday when 21,312 contracts changed hands. Spreading accounted for 8,976 of the contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Nov 491.50 up 1.40
Jan 497.10 up 1.60
Mar 500.00 up 1.00
May 502.40 up 0.70

SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, seeing some follow-through buying after yesterday’s gains.

The 3.6 million tonnes of weekly export sales announced on Thursday remained a supportive influence. The United States Department of Agriculture also announcing private export sales of 222,000 tonnes of soymeal to the Philippines on Friday.

However, relatively favourable Midwestern crop conditions kept a lid on the upside.

CORN futures were also supported by yesterday’s good export sales, along with news of an additional sale of 110,000 tonnes to Mexico this morning.

Forecasts calling for beneficial rains across much of the Corn Belt over the weekend put some pressure on values, and corn held near unchanged overall.

WHEAT futures were higher at the close, although activity was choppy throughout the session as investors adjusted positions on the last trading day of the month.

Citing dryness and frost damage, the Buenos Aires Grain Exchange lowered its estimate for Argentina’s wheat crop to 6.8 million tonnes, which was down by 300,000 from an earlier forecast.

Futures Prices as of July 31, 2020

Canola
Price Change
Milling Wheat
1970-01-01 00:00
Price Change
Durum
1970-01-01 00:00
Price Change
New Barley
1970-01-01 00:00
Price Change

Prices are in Canadian dollars per metric ton

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