By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, Feb. 12 (CNS Canada) – ICE Futures Canada canola contracts were mostly lower at Friday’s close, after chopping around both sides of unchanged throughout the session.
Gains in CBOT soy oil and other vegetable oil markets, including Malaysian palm oil, did lend some spillover support to canola throughout the day. Recent chart activity was also said to be looking a bit more constructive, as prices have moved well off of the nearby lows hit on Wednesday.
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Solid exporter and domestic crusher demand remained a supportive influence as well, although increased selling pressure was noted on the other side.
Strength in the Canadian dollar and slight declines in CBOT soybeans also weighed on values.
Canadian markets will be closed Monday for a variety of provincial holidays, including Louis Riel Day in Manitoba. The US markets will also be closed for President’s Day, and positioning ahead of the long weekend was a feature on both sides of the border.
About 30,160 canola contracts were traded on Friday, which compares with Thursday when 33,965 contracts changed hands. Spreading accounted for about 18,468 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed about one to two cents per bushel weaker on Friday, as traders took profits ahead of the weekend, and Brazilian producers continued harvesting.
Brazil’s harvest is bearish for soybeans as it adds supplies to already-high global stocks.
Favourable weather in other regions in South America was also a feature on Friday.
Despite stronger export numbers released by the United States Department of Agriculture (USDA), some investors are still concerned about demand.
SOYOIL prices settled stronger on Friday, tracking Malaysian palm oil.
SOYMEAL closed higher on Friday, following nearby grain markets.
CORN futures closed about one to two cents per bushel weaker on Friday, pressured by profit-taking ahead of the long weekend.
Strength in crude oil futures limited losses.
WHEAT closed one to two cents per bushel lower on Friday, pressured by the same factors that have been plaguing the commodity for months—weak demand and high global supplies.
– Russia is expected to leave its wheat export tax unchanged, market watchers say.
– Egypt has put out a wheat tender for delivery in March.
