By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Oct. 19 (CNS Canada) – ICE Futures Canada canola contracts settled higher on Thursday, breaking above nearby chart resistance as gains in Chicago Board of Trade soyoil provided support.
CBOT soyoil found support on the back of talk that U.S. President Donald Trump has directed the Environmental Protection Agency not to cut biofuel requirements in the country. Soyoil was pressured recently by proposals calling for a reduction in the renewable fuel quotas.
Speculative buying contributed to the gains in canola, as the November contract finally held above the C$500 per tonne mark, after running into resistance at that level for the past week.
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A seasonal slowdown in farmer selling, as harvest operations are finished across most of the Prairies was also supportive.
However, forecasts calling for better weather in those areas of Alberta still needing to be harvested put some pressure on values.
About 26,459 canola contracts traded on Thursday, which compares with Wednesday when 28,660 contracts changed hands. Spreading accounted for 19,732 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
Soybean futures at the Chicago Board of Trade were higher on Thursday, as solid export demand and gains in soyoil provided support.
U.S. President Donald Trump has reportedly told the Environmental Protection Agency not to lower the country’s renewable fuels mandates. That news gave the grain and oilseeds a boost, as there had been concern recently over proposed reductions, which would cut into the demand for the feedstock crops grown across the Midwest.
Weekly U.S. soybean export sales were in line with market expectations, at about 1.3 million tonnes. The USDA also reported additional sales of 384,000 tonnes of beans to China this morning.
Corn also edged higher, with the EPA talk contributing to the gains. Weekly corn sales of 1.25 million tonnes came in above trade expectations, adding to the firmer tone.
However, relatively favourable Midwestern harvest weather kept a lid on the corn market.
Wheat was higher on the day, as recent declines brought in some export demand.
Weekly U.S. wheat exports came in at just over 600,000 tonnes, according to the USDA, beating pre-report trade guesses.
Chart-based buying was a feature, as wheat futures moved off their nearby lows.
However, ample world supplies remained bearish in the background.
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