By Dave Sims, Commodity News Service Canada
Winnipeg, MB, March 2, 2018 (CNS Canada) – The ICE Futures Canada canola posted gains to finish the week, taking support from the Canadian currency. The Canadian dollar was lower, relative to its U.S. counterpart, which made canola more attractive to international buyers.
Gains in U.S. soybeans were supportive for the market.
A proposal by U.S. President Donald Trump to impose tariffs on steel and aluminum created turmoil in international markets Friday and raised ideas China could eventually retaliate with penalties of their own on agriculture.
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“Canada could possibly benefit from that,” noted a trader in Winnipeg.
Traders were positioning themselves ahead of the weekend. Next week the USDA is set to release its monthly supply and demand estimates, while a major biofuel meeting is taking place in the U.S.
However, losses in U.S. soyoil weighed on the market.
Precipitation fell in some parts of Alberta this week and moisture is expected in Manitoba this weekend, which should help improve soil-moisture levels.
Around 18,726 canola contracts were traded on Friday, which compares with Thursday when around 17,896 contracts changed hands. Spreading accounted for 5,882 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market finished higher on Friday due to speculative trading and strength in soymeal.
The USDA reported a sale of nearly 200,000 tonnes of soybeans to China.
The Buenos Aires grain exchange has lowered its prediction for the size of this year’s crop in Argentina from 47 million tonnes to 44 million.
Corn futures ticked slightly lower in technical trading.
Crop conditions ratings in Argentina are steadily creeping lower due to the drought.
Parts of the eastern Midwest are expected to receive more rain this weekend, which could hamper barge traffic.
Chicago wheat futures suffered large losses on Friday to end the week as traders took profits.
Chicago wheat had gone higher for six days and was at its highest point in over half a year, prompting investors to square positions.
Rain is expected to fall in the U.S. Plains late next week.
