By Dave Sims, Commodity News Service Canada
Winnipeg, March 4 – THE ICE Futures Canada canola market ended mostly higher Friday with the most-active May contract finishing unchanged, while the more-deferred contracts tracked US soy higher.
Gains in the US soy complex, Malaysian palm oil and European rapeseed futures contributed to the upside.
Commercial demand remains steady while global financial markets improved their positions, which was bullish.
Crude oil was also higher which added to the gains.
However, the Canadian dollar was about half a cent higher relative to its US counterpart, which made canola less enticing to most international buyers.
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The advancing soybean harvest in South America along with China’s decision to clamp down on dockage requirements in canola shipments was bearish for the market.
Around 23,561 canola contracts were traded on Friday, which compares with Thursday when around 45,007 contracts changed hands. Spreading accounted for about 8,208 of the contracts traded.
Milling wheat and durum were both untraded while 25 barley contracts changed hands.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures posted gains of 14 cents per bushel Friday after the Brazilian currency rose higher due to a political scandal. Buying erupted on markets as traders honed in on the favourable exchange rates.
There are more forecasts calling for significant rainfall in Brazil which was bullish as that could both slow the harvest and disrupt barge traffic, said analysts.
Brazil is expected to bump up its bio-diesel blend from 7 percent to 10 percent over the next three years, according to a report.
Soyoil ended 35 points higher taking strength from crude oil.
SOYMEAL futures finished higher following soybeans.
Corn futures on the Chicago Board of Trade inched higher to end the week taking strength from gains in crude oil and short-covering.
Winter weather in the US plains has prompted speculation that spring planting could be delayed.
There are some ideas the US corn carryout could be higher in next week’s USDA report.
Wheat futures on the Chicago Board of Trade eked out tiny gains as traders covered short positions before the weekend.
The market took some strength from weakness in the US dollar and concerns over dryness in the US southern plains’ hard-red winter wheat crop.
The harvest in India looks worse than expected while production estimates for Russia and Ukraine have been reduced, according to a report.
– According to reports Ukraine’s wheat crop could drop by 20 percent next year due to dry weather.
– Farmers are expected to plant more than 31 million hectares of spring grain in Russia. Planting began two weeks ago.
