By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, May 20 (CNS Canada) – ICE Futures Canada canola contracts posted solid gains on Friday, after bouncing around both sides of unchanged in choppy activity as speculators were on the buy-side ahead of the long weekend.
Canadian markets will be closed Monday, May 23, for Victoria Day, while US markets remain open.
A weaker tone in the Canadian dollar provided some support, while persistent weather concerns in parts of the Prairies were another bullish feature.
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While some moisture is expected across many of the dry areas of Alberta over the next few days, the forecasts have been downgraded from earlier expectations and more moisture will be needed, said traders.
CBOT soyoil was down sharply on the day, which put some pressure on canola.
About 23,427 canola contracts were traded on Friday, which compares with Thursday when 17,245 contracts changed hands. Spreading accounted for about 9,678 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed mixed, but mostly lower, on Friday.
Front contracts were propped up by advances in the nearby soymeal market.
But investor profit-taking caused prices to fall.
Favourable weather in the US should allow farmers to wrap up seeding, which added pressure to the market.
Gains in the US dollar added to the bearish tone by making the country’s commodities less appealing to international buyers.
SOYOIL prices closed weaker on Friday.
SOYMEAL closed stronger on Friday.
Market watchers say gains were driven by a distillers’ dried grain shortage, as soymeal can be used as a substitute.
CORN futures closed mostly stronger on Friday, propped up by strong demand.
Spillover support from soymeal added to corn’s advances.
But gains in the US dollar limited advances in far contracts ahead of the weekend.
WHEAT closed mostly weaker on Friday, feeling pressure from gains in the greenback.
Increased production estimates for key growing regions added to the declines.
However, spillover support from corn limited declines.
– A crop forecaster expects US wheat production will reach 60.9 million metric tonnes, which is higher than United States Department of Agriculture projections.
– Russian wheat production is expected to reach 64.6 million metric tonnes, market watchers say.
