By Phil Franz-Warkentin, MarketsFarm
Winnipeg, Jan. 17 (MarketsFarm) – ICE Futures canola contracts were stronger on Friday, taking back much of the losses posted earlier in the week amid ideas those declines were overdone.
A turn higher in Chicago Board of Trade soyoil and soybeans provided underlying support. A weaker tone in the Canadian dollar also underpinned the futures.
However, large supplies in the commercial pipeline tempered the upside. The Canadian Grain Commission reported total visible canola supplies of 1.5 million tonnes in its latest weekly report.
About 17,596 canola contracts traded on Friday, which compares with Thursday when 14,099 contracts changed hands. Spreading accounted for 11,580 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, seeing a correction ahead of the weekend after dropping sharply earlier this week.
Uncertainty over the phase one trade deal signed between the United States and China earlier this week remained a feature in the market, as traders are skeptical over how much more U.S. agricultural commodities China will actually buy.
Forecasts calling for improving moisture conditions for developing soybean crops in Brazil also put some pressure on values, tempering the advances.
Losses in Malaysian palm oil, amid increasing tensions between that country and India, were also bearish for soyoil. However, soyoil futures uncovered chart support and turned higher.
CORN was also up on Friday, seeing a correction after dropping to its lowest levels in one month on Thursday. Yesterday’s solid weekly export data was also supportive.
WHEAT futures were due for a correction ahead of the weekend as well, with the biggest gains in Minneapolis spring wheat as solid export demand provided support. Ideas that yesterday’s losses were overdone added to the pre-weekend buying interest.
Production concerns elsewhere in the world, including Europe and Australia, contributed to the strength in the futures.
Futures Prices as of January 17, 2020
Prices are in Canadian dollars per metric ton