By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, January 8 – The ICE Futures Canada canola market corrected higher Friday, just one day after suffering steep losses.
Global financial markets were much steadier in the wake of yesterday’s crash which underpinned the market.
Gains in the US soy complex also supported canola along with commercial buying.
Ideas that yesterday’s losses were overdone also supported prices.
The Canadian dollar continues to linger near 12-year lows relative to its US counterpart, which was bullish for values.
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…
However, losses in Malaysian palm oil and European rapeseed futures were bearish for canola.
Improving prospects for South American soybeans also helped to undermine the market.
Investors are keenly waiting for the release of the USDA quarterly stocks report on January 12.
Despite the recent volatility canola remains locked into a long-term sideways range.
Around 16,798 canola contracts were traded on Friday, which compares with Thursday when around 29,329 contracts changed hands.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade closed half-a-cent to two-and-a-half cents per bushel stronger on Friday, propped up by investor short-covering and technical buying ahead of reports from the United States Department of Agriculture due out next week.
A recovery in Chinese stocks also supported soybean prices on Friday.
However, Brazil is expected to see rain, which improves the production potential for the crops in the region, which limited gains.
SOYOIL prices settled slightly higher on Friday, supported by investor short-covering.
CORN futures closed four to four-and-a-half cents per bushel higher on Friday, as traders took positions ahead of next week’s reports.
However, increased corn exports and competition from Argentina limited gains on Friday.
The expectation that next week’s reports will show ample supplies of grains makes corn look bearish short-term, analysts say.
WHEAT closed nine to ten-and-a-half cents per bushel stronger on Friday, supported by short-covering and technical buying.
The expectation that some regions in the US saw crop loss due to flooding also supported prices.
Wheat was able to bounce up from the contract lows seen earlier in the week on Friday, but many market watchers say wheat’s supply and demand picture looks bearish.
– According to market watchers, South Korea bought 83.2 thousand metric tonnes of milling wheat, sourced from the US and Canada.
– Japan bought 131 thousand metric tonnes of wheat, sourced from Canada, the US and Australia, according to analysts.
