By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Oct. 6 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Friday, settling at their highest levels of the past month as speculative buying provided support.
Persistent concerns over cool and wet conditions in Alberta, where snow delayed harvest operations in some areas this week, accounted for some of the strength in canola, according to participants.
Recent weakness in the Canadian dollar was also supportive, although the currency held steady on Friday.
Farmer deliveries kept a lid on the upside, with the latest Canadian Grain Commission data showing farmers delivered over half a million tonnes of canola into the commercial pipeline during the week ended October 1.
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Canadian markets will be closed Monday, October 9, for Thanksgiving, while US markets will remain open. Positioning ahead of the long weekend was a feature.
About 19,478 canola contracts traded on Friday, which compares with Thursday when 27,246 contracts changed hands. Spreading accounted for 9,140 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
Soybean futures posted small gains on Friday, as wet, harvest delaying weather across parts of the Midwest provided underlying support. Follow-through buying interest after yesterday’s bounce higher added to the firmer tone.
However, rising production estimates out of Brazil tempered the gains. Farmers in the South American country are seeing improving moisture conditions as they start seeding their next crop.
Corn prices held within a narrow range, lacking any clear direction on Friday, although the bias was higher.
The USDA announced a private sale of 195,000 tonnes of US corn to unknown destinations this morning, giving the market a bit of a boost.
Harvest delays in parts of the Corn Belt were also supportive.
Wheat futures were up by two to eight cents per bushel, with the largest gains in Minneapolis spring wheat as good demand out of China gave that market a boost.
Concerns over excess moisture and flooding in parts of Argentina were also supportive.
However, world wheat supplies remain large overall, with rising Russian production estimates overhanging the market.
