By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, May 26 (CNS Canada) – ICE Futures Canada canola contracts ended lower on Friday, weighed down by losses in the US soy complex.
The Canadian dollar was slightly stronger relative to its US counterpart, which made canola less attractive to out-of-country buyers.
Large funds are also sticking to the sidelines ahead of Memorial Day in the US when those markets are closed. According to the trader, the funds are long in the market and stepped back from trading when the technicals turned flat to negative.
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The next few days are expecting to see drier weather returning to the western Prairies.
“We have seen some hedges throughout this week which are keeping pressure on canola,” said a Winnipeg-based trader.
However, soggy soil conditions in parts of Alberta and Saskatchewan are keeping some farmers off the field, which limited the losses.
Shrinking supplies of commercial canola in Canada was a supportive feature while traders were positioning themselves ahead of the long weekend.
About 21,526 canola contracts traded on Friday, which compares with Thursday when 12,536 contracts changed hands. Spreading accounted for 5,952 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed six to 13 cents per bushel weaker on Friday, as traders took positions ahead of the long weekend.
US markets will be closed on Monday, May 29 for Memorial Day.
Ideas that acres intended for corn will be switched into soybeans further pressured the market. Producers in the US may be switching to oilseeds, due to planting delays.
Spill-over pressure from the soy oil and Malaysian palm oil markets added to the downside.
SOYOIL prices closed lower on Friday.
SOYMEAL closed lower on Friday.
CORN futures closed three to five cents per bushel stronger on Friday.
US producers may be seeding less of the grain this year, which is bullish.
Spill-over support from the crude oil and wheat markets added to corn’s upside.
WHEAT closed five to seven cents per bushel higher on Friday, underpinned by concerns about US crop quality.
Market watchers say US wheat may be competitive internationally, which was also bullish for values.
Canada is seeing seeding delays in some areas, which added to the market’s upside.
