By Phil Franz-Warkentin, MarketsFarm
Winnipeg, Oct. 4 (MarketsFarm) –ICE Futures canola contracts were stronger on Friday, seeing a continuation of the past week’s rally as Prairie weather concerns remained supportive. Spillover from advances in Chicago Board of Trade soybeans added to the firmer tone.
Harvest operations remain well behind normal across Western Canada, with the latest crop report out of Alberta showing the canola harvest at only 15.6 per cent complete as of this past Tuesday.
Bullish chart signals contributed to the gains after Thursday’s move above previous resistance.
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However, large old crop supplies and ongoing concerns over trade relations with China tempered the upside.
About 33,707 canola contracts traded on Friday, which compares with Thursday when 38,689 contracts changed hands. Spreading accounted for 25,566 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, with reports of scattered frost across parts of the Midwest providing support ahead of the weekend.
Census data out this morning confirmed record United States soybean export sales for the month of August of 4.9 million tonnes in 2019. The solid sales brought total exports for the recently completed 2018/19 marketing year slightly above the U.S. Department of Agriculture’s most recent projection.
China was a noted buyer, with optimism building over looming trade talks between the country and the U.S.
Meanwhile, chart-based selling weighed on CORN, as traders adjusted positions after a week of choppy activity.
U.S. corn exports in August of 2.8 million tonnes were down slightly from the previous month and roughly half of what moved during the same month a year ago.
Corn did find some strength from a new biofuels plan out of Washington, which includes increases to the annual blending requirements in the country.
WHEAT futures were mixed on Friday, with gains in Chicago and Minneapolis, but small losses in the Kansas City market as the spreads between the three contracts saw some adjustment.
U.S. wheat exports in August hit their highest monthly total in three years, at 2.57 million tonnes.
The gains in spring wheat were tied to the persistent weather delays in Canada and the northern U.S., as concerns grow over the quality of the North American spring wheat crop.
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