By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, June 17 – THE ICE Futures Canada canola market chalked up gains Friday, as advances in US soy outweighed the bearish influence of the Canadian currency.
Crude oil and the vegetable oil market were both higher which was supportive for canola.
Traders were positioning themselves before the weekend, according to a report.
There were ideas yesterday’s losses were overdone.
However, the Canadian dollar was stronger relative to its US counterpart which made canola less attractive to international buyers.
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While canola appears range-bound that could easily change with a weather event, he added.
“The odds are we have the early summer highs in place for the market, but if the weather turns bad we can certainly take those highs out.”
Around 28,369 canola contracts were traded on Friday, which compares with Thursday when around 35,993 contracts changed hands. Spreading accounted for about 15,854 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were up by 12 to 29 cents per bushel on Friday, seeing a corrective bounce to end the week amid ideas that Thursday’s sell-off was overdone.
In addition to the chart-based positioning, persistent rain delays in Argentina were also supportive.
Solid export demand contributed to the gains, with the USDA reporting sales of 129,000 tonnes of US soybeans to China and an additional 395,000 tonnes to unknown destinations.
However, the relatively favourable US growing conditions did limit the upside.
SOYOIL futures were up sharply on Friday, recovering all of Thursday’s losses.
SOYMEAL futures were up on Friday.
CORN futures in Chicago were up by seven to 13 cents on Friday, taking some direction from the rally in soybeans.
Solid export demand from South Korea, shipping delays out of South America, supportive technical signals, and a weaker tone in the US dollar index all contributed to the gains in corn.
Hot temperatures in the forecasts were also somewhat supportive, although conditions remain relatively favourable for crop development overall.
WHEAT futures in Chicago were up by seven to 10 cents per bushel on Friday, seeing a modest correction to end the week.
Concerns over excess moisture harming wheat crops in Europe and the Black Sea region were also supportive.
However, favourable weather conditions for the advancing US winter wheat harvest did temper the gains.
– Saudi Arabia is looking to purchase 300,000 tonnes of hard wheat with 12.5 per cent protein, the Saudi Grains Organisation said when releasing its tender.
– France is set to ship 66,000 tonnes of wheat to Vietnam, marking the first significant sale of French wheat to the country in 25 years, according to reports.
– India has reportedly extended its 25 per cent duty on wheat imports until the end of September. The duty, in place to support the domestic market in the face of cheaper imports, had been set to expire at the end of June.
