By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, April 1 – THE ICE Futures Canada canola market finished stronger on Friday, following gains in the US soy complex and vegetable oil.
European rapeseed futures and Malaysian palm oil were both stronger, which helped underpin values.
The Canadian dollar was about a quarter of a cent lower than its US counterpart, which made canola more desirable to foreign buyers.
Canola broke through technical resistance at C$480.
Funds are in the midst of buying back into their massive short position, said a Winnipeg-based analyst.
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“They’ve cut it in half already. They’re probably still short about 15,000 or 20,000 contracts,” he said.
China’s decision to delay changes to its dockage allowance on Canadian canola imports also indicates the country is still interested in buying supplies, he added.
“China needs canola. As the price goes higher they’d rather buy it sooner than later,” he said.
However, declines in crude oil were bearish.
Large global supplies of soybeans also weighed on values.
Around 22,142 canola contracts traded on Friday, which compares with Thursday when around 18,663 contracts changed hands. Spreading accounted for about 6,736 of the contracts traded.
Milling wheat and durum were untraded while 25 barley contracts changed hands.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed seven to nine cents per bushel higher on Friday, still feeling support from Thursday’s data.
The United States Department of Agriculture (USDA) released its prospective plantings report on Thursday, and the anticipated amount of soybeans seeded this year came in behind trade expectations, which is bullish.
However, high stockpiles put a lid on gains.
SOYOIL prices settled stronger on Friday, tracking Malaysian palm oil.
SOYMEAL closed stronger on Friday, following nearby grain and oilseed markets.
CORN futures closed about two cents per bushel stronger on Friday, propped up by investor short covering after a bundle of bearish data was released by the USDA on Thursday.
This year’s corn seeding is the third largest since 1944, and US stockpiles are above year-ago levels.
But Thursday’s sell-off pushed prices low enough to spur demand, which provided some support on Friday.
Rain in the US Delta was also bullish for corn, as it delays planting.
WHEAT closed two to three cents per bushel stronger on Friday, as this year’s wheat and winter wheat seeding is expected to be behind last year’s pace, USDA data said.
Dry conditions over the next seven to 10 days in the US Southern Plains added to wheat’s gains.
– The European Union has licensed 969 thousand metric tonnes of soft wheat for export, market watchers say.
– Most of France’s wheat crop is in excellent condition, analysts say.
