By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Oct. 27 (CNS Canada) – ICE Futures Canada canola contracts were higher on Friday, closing at their strongest levels since August.
The weakness in the Canadian dollar over the past few days was a supportive feature, according to participants, as the softer currency made canola look more attractive to export customers.
Speculators were also on the buy side for most of the session, adding to their growing net-long positions.
However, the January contract ran into stiff resistance as it neared the C$520 per tonne mark. January canola has not managed to settle above that point since a brief move in early July.
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Increased farmer selling also put some pressure on the market, as strength in the cash market encouraged producer pricing, according to broker.
About 26,542 canola contracts traded on Friday, which compares with Thursday when 32,707 contracts changed hands. Spreading accounted for 16,228 of the contracts traded.
Soybean futures at the Chicago Board of Trade were stronger on Friday, with good export demand behind some of the strength.
The USDA announced a private export sale of 238,000 tonnes of United States soybeans to China this morning.
The U.S. soybean harvest is moving along and is expected to be about 80 per cent complete by this weekend. With seasonal harvest pressure winding down, attention in the market was shifting to South American seeding conditions.
Improving moisture conditions in Brazil kept a lid on the bean market. In Argentina, soybean seeding is just getting underway, with total acres expected to be down on the year.
Corn prices edged lower as seasonal harvest pressure kept the December contract within a narrow range.
The U.S. corn harvest is thought to be about half done, which would be an improvement over the past week, but still well off the average pace for this time of year.
The USDA announced a sale of 132,000 tonnes of corn to Spain this morning.
Wheat was lower on the day, as large world supplies continued to weigh on values after yesterday’s upward revision of the world production estimate from the International Grains Council.
Increased export competition out of Russia is expected to limit the potential for U.S. wheat this year.
