By Dave Sims, Commodity News Service Canada
THE ICE Futures Canada canola market corrected higher Friday. Canola was due for a correction in the wake of yesterday’s steep declines, according to a trader in Winnipeg.
“There was also some stepped up commercial buying as the prices were attractive to them,” he said, adding it would be a while before the market was fully able to re-take the high points it saw in June.
“Weather could still emerge but without weather the highs for the season are in, because we’ve got big crops coming,” he said.
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The Canadian dollar was weaker relative to its US counterpart, which made canola more attractive to out-of-country buyers.
Advances in the US soy complex and crude oil underpinned the market.
Demand has been steady from end-users and there are sentiments canola is cheap compared to other oilseeds, according to a report.
However, losses in Malaysian palm oil and European rapeseed futures undermined values.
Some traders were likely squaring positions before the weekend, an analyst said.
Around 20,360 canola contracts were traded on Friday, which compares with Thursday when around 28,587 contracts changed hands. Spreading accounted for about 404 of the contracts traded.
Milling wheat and barley were untraded while 75 barley contracts changed hands.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures corrected higher Friday in the wake of yesterday’s steep losses. Futures were anywhere from 30 to 35 cents per bushel higher on the Chicago Board of Trade.
According to the USDA, export sales for 2015/16 in the US were pegged at 637,000 tonnes, which was higher than many pundits expected.
While rain is still sweeping across soybean fields in the US, hot and dry weather is eventually expected which was supportive.
Soyoil finished 56 points higher due to healthy export numbers in the US.
SOYMEAL futures settled higher, taking their lead from soybeans. The market was also drawing strength from flooding in China which is killing livestock.
Corn futures finished 11 to 14 cents per bushel higher Friday on ideas the market was oversold.
As well, new forecasts calling for hotter weather to return to the US Midwest in 10 days were also bullish for prices, according to a report.
Consulting agency Safras and Mercado predicts a major shortfall in Brazilian corn production this year. The agency pegged the crop at 76.3 million tonnes for 2015/16 which is down from 88 million tonnes last year.
Wheat futures on the Chicago Board of Trade finished 8 to 10 cents per bushel higher Friday, taking strength from spillover gains in the corn market.
The US dollar was softer which helped export sales.
Weather in the US Southern Plains has been beneficial for harvesting efforts which was supportive.
– According to the US drought monitor, 30.6 percent of the US Midwest is mired in some form of drought.
– The US spring wheat crop is proceeding at an above-average pace, according to the USDA.
