By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Nov. 15 (CNS Canada) – ICE Futures Canada canola contracts were up sharply on Wednesday, as a rally in Chicago Board of Trade soyoil provided underlying support.
Soyoil futures were supported by better-than-expected U.S. soybean crush data and declining soyoil stocks in the country.
Chart-based buying was a feature in canola, with some stops hit on the way up as canola took back most of the losses posted in recent days.
Solid end-user demand and weakness in the Canadian dollar contributed to the firmer tone in canola.
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However, ample supplies in the commercial pipeline kept a lid on the upside. Improving crop prospects for South American soybeans also put some pressure on values.
About 20,572 canola contracts traded on Wednesday, which compares with Tuesday when 13,546 contracts changed hands. Spreading accounted for 11,316 of the contracts traded.
Soybean futures at the Chicago Board of Trade were up on Friday, with speculative buying behind some of the strength as the market saw a corrective bounce following recent declines. End-user bargain hunting was also supportive.
Better-than-expected monthly soybean crush data provided a catalyst for the gains, as the National Oilseed Processors Association pegging the October crush at 164.2 million bushels. That was up by nearly 30 million from the previous month and only 200,000 bushels off of the previous record. Even with the solid crush pace, supplies of soyoil were down on the month their tightest level in nearly three years, and the resulting rally in soyoil contributed to the gains in beans.
The underlying fundamentals remain relatively bearish, especially as growing conditions in South America continue to show improvement.
Corn held within a penny of unchanged, seeing some consolidation after hitting fresh contract lows. The large U.S. crop kept the market under pressure, while losses in wheat also weighed on values.
Large world wheat supplies and increasing competition out of Russia kept the path of least resistance pointed lower for wheat.
Russian wheat exports this year are forecast to hit 33 million tonnes, according to reports. That would be at least six million tonnes above anything seen in recent years.
