By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, April 29 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Friday, boosted by fund buying once again as the futures flirted with upside resistance.
The need to keep some weather premiums in the futures heading into the growing season remained supportive as well, especially with persistent dryness concerns in some parts of the Canadian Prairies and excess moisture in others, according to participants.
However, the most active July contract was hard pressed to see much traction above the psychological C$500 per tonne mark, with scale up hedges and technical resistance tempering the gains as participants squared positions on the final trading day of the month.
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A downturn in CBOT soyoil and early strength in the Canadian dollar were also bearish for canola, with crush margins declining by over C$10 per tonne over the past two days.
About 18,489 canola contracts were traded on Friday, which compares with Thursday when 27,109 contracts changed hands. Spreading accounted for 11,446 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed three cents per bushel weaker to three cents per bushel stronger on Friday, as investor profit-taking cut into gains ahead of the weekend.
However, crop-loss in Argentina provided some support.
As the country’s harvest continues, the extent of the damage will become clear.
Month-end positioning was also a feature.
SOYOIL prices settled weaker on Friday, tracking losses in Malaysian palm oil.
SOYMEAL closed stronger on Friday, tracking nearby grain markets.
CORN futures closed one cent per bushel weaker to three cents per bushel stronger on Friday, following the soybean market.
Dry weather in Brazil was also a supportive feature on Friday.
But the expectation that US seeding will resume soon due to favourable weather caused weakness in far contracts.
WHEAT closed two to four cents per bushel stronger on Friday, as technical buying continued into the weekend.
Stronger export data continued to support prices.
But a rebound in the US dollar and ample supplies limited gains.
– The International Grains Council (IGC) on Thursday raised its world wheat estimates for 2016/17 to 717 million tonnes.
– Russian officials say the country is the global leader in wheat exports, according to reports.
