By Dave Sims, Commodity News Service Canada
Winnipeg, December 22 (CNS Canada) – Canola contracts on the ICE Futures Canada platform finished mixed on Friday, as traders rolled out of the January contract ahead of the holidays in favour of March.
Investors took care to position themselves ahead of the extended holiday weekend. No one wanted to be caught in a risky placement before markets reopened next week. U.S. markets will re-open for business on Tuesday and Canadian ones the day after that.
Gains in U.S. soybeans and soyoil lent some strength to the front-month January contract. The more-active March contract momentarily broke through major resistance at C$500 per tonne but was unable to hold the line and finished well below it.
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Lukewarm demand and rising supplies of oilseeds in the global market weighed down the more-deferred values.
Around 22,051 canola contracts were traded on Friday, which compares with Thursday when around 18,707 contracts changed hands. Spreading accounted for 15,360 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade ended roughly a cent higher on Friday in technical trading.
The U.S. sold a quarter million tonnes of soybeans to China, which was supportive.
However most of Brazil and Argentina are receiving favourable rains, which undermined values.
Corn futures eked out gains of nearly one cent to end the week, propped up by short-covering.
Demand for ethanol and livestock feed in the U.S. underpinned the market.
However, the European Union hiked its corn production estimate by four per cent, which dragged on values.
Chicago wheat futures finished one to two cents lower on Friday in technical trade.
Millers in Thailand purchased 150,000 tonnes of wheat from the U.S., which was supportive.
The low price of U.S. wheat has recently drawn interest from countries that normally buy from the Black Sea region.
