By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, Jan. 15 – ICE Futures Canada canola contracts were narrowly mixed on Friday, with losses in the front months and a firmer tone in the new crop months. Activity was choppy throughout the session, as the market reacted to conflicting outside forces.
Sharp weakness in the Canadian dollar did provide some support for canola, as it makes the oilseed more attractive to both exporters and domestic crushers.
However the global economic turbulence that contributed to the Canadian dollar’s fall below 69 US cents was also bearish for canola, as crude oil fell and the US soy complex moved lower.
Read Also
North American Grain/Oilseed Review: Canola rises, down day for grains
Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange were higher on Friday despite weakness in most comparable…
US markets will be closed Monday for Martin Luther King Jr. Day, while Canadian markets will operate as usual. Positioning ahead of the US long weekend was another feature in canola.
About 34,989 canola contracts were traded on Friday, which compares with Thursday when 28,503 contracts changed hands. Spreading accounted for about 16,216 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed three to five cents per bushel lower on Friday, as turbulence in global markets pressured prices.
Falling crude oil prices and losses in Chinese stocks had a bearish effect on soybeans.
China is the world’s largest importer of soybeans, and economic weakness could indicate tapering demand in the future.
A stronger US dollar furthered losses on Friday.
SOYOIL prices settled lower on Friday, tracking soybean futures.
SOYMEAL closed lower on Friday, as ample US supplies and weak export data pressured prices.
CORN futures closed three to five cents per bushel stronger on Friday, gathering support from the nearby wheat market.
Stronger export sales also boosted prices on Friday.
Investor short-covering added to the bullish tone.
WHEAT closed four to five stronger on Friday, as investor short-covering propped up prices.
Wheat prices were also supported by dropping temperatures in Nebraska and Kansas, which poses a risk to winter wheat crops.
– Argentina’s wheat crop is estimated at 9.6 million metric tonnes, according to the Rosario Grain Exchange.
– US export sales were at 274 thousand metric tonnes.
