By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 1 (MarketsFarm) – The ICE Futures canola market was higher on Friday, as weakness in the Canadian dollar provided support.
The currency was down sharply relative to its United States counterpart, which helped crush margins improve and makes exports more attractive to international buyers.
A slowdown in farmer selling, as producers turn their attention to spring seeding and harvesting the last of the 2019 crop, also provided some support.
However, losses in Chicago Board of Trade soybeans and soyoil put some pressure on canola values. Large old crop supplies and ongoing uncertainty over the COVID-19 pandemic also helped temper the upside.
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By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed a pinch higher on Friday, after…
About 13,029 canola contracts traded on Friday, which compares with Thursday when 18,072 contracts changed hands. Spreading accounted for 6,430 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Friday amid renewed uncertainty over trade relations with China.
United States President Donald Trump blamed China for the COVID-19 outbreak on Thursday and threatened retaliatory measures, putting the recent trade deal between the two countries in jeopardy.
Expectations that some intended corn area will go into soybeans instead in the U.S. also weighed on values.
However, the U.S. Department of Agriculture reported private export sales of 264,000 tonnes of soybeans to China this morning, helping alleviate the trade concerns to some extent.
CORN futures were lower to end the week, as soft demand for ethanol continued to weigh on prices.
While some intended corn area may go into soybeans, seeding weather is relatively favourable across the Midwest and farmers are expected to make good progress over the weekend.
On the other side, a rally in livestock futures today was somewhat supportive for the feed grain.
WHEAT futures were down, as ideas that Thursday’s rally was overdone had investors back on the sell side. Improving moisture conditions in Europe and the Black Sea region also weighed on values.
