By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 8 (MarketsFarm) – The ICE Futures canola market was narrowly mixed at Friday’s close, with small losses in the nearby November contract and a firmer tone in the more deferred months as traders squared positions ahead of the Thanksgiving long weekend.
Early gains Chicago Board of Trade soyoil and soybean futures had provided some underlying support for canola. However, the soy complex retreated to post losses as the day progressed
Strength in the Canadian dollar was also bearish for canola, as the currency climbed well above 80 U.S. cents. The rising currency cuts into the already soft crush margins and makes exports more expensive for global buyers.
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Canadian markets will be closed Monday for Thanksgiving. U.S. markets will trade their usual hours, although some U.S. government offices will be closed for Columbus Day.
About 21,729 canola contracts traded on Friday, which compares with Thursday when 28,978 contracts changed hands. Spreading accounted for 17,618 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade backed away from earlier advances to settle with small losses on Friday.
Positioning ahead of next Tuesday’s monthly United States Department of Agriculture supply/demand report accounted for some of the activity, with average trade guesses calling for increases to both world and US ending stocks forecasts.
Brazil’s agriculture ministry released preliminary estimates on their 2021/22 today, calling for a 2.5 per cent increase in seeded area on the year and total soybean production of 140.8 million tonnes. That compares with the upwardly revised 137.3 million tonne old crop.
Seasonal harvest pressure added to the general weakness in soybeans.
CORN lacked any clear direction on Friday, trading to both sides of unchanged to close with small losses.
Opinions are mixed ahead of next week’s report, with some traders calling for an increase in global corn ending stocks and others for a decrease from earlier estimates. World corn ending stocks for the 2021/22 marketing year were pegged at 297.6 million tonnes in September.
Seeded area for Brazil’s first corn crop is expected to be up by 4.75 per cent on the year, with production at 116.3 million tonnes, according to the country’s agriculture ministry. That would be well above the old crop production of 87 million tonnes
WHEAT was mixed, with strength in Minneapolis spring wheat and losses in the winter wheats as traders adjusted positions ahead of the weekend.
Ukrainian farmers are nearly half finished seeding their winter wheat crop, while seeding in Europe is also underway. Favourable weather and good prices are expected to lead to steady to larger wheat crops in the continent.
