By Dave Sims, Commodity News Service Canada
Winnipeg, October 13 – The ICE Futures Canada canola market posted gains to end the week, riding the coattails of Thursday’s USDA report which predicted lower soybean yields in the U.S.
Gains in vegetable oil and U.S. soybeans also helped to underpin canola.
Delays in the U.S. soybean harvest bolstered the canola market.
The front-month November contract briefly broke through the psychologically-important C$500 per tonne mark.
However, large funds were liquidating their canola/soy spreads, which was bearish.
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ICE canola mixed at midday Friday
Glacier FarmMedia —The ICE Futures canola market was narrowly mixed at midday Friday, consolidating near unchanged to end the week….
Harvest conditions in the western portion of the Prairies are improving.
Around 34,507 canola contracts were traded on Friday, which compares with Thursday when around 44,085 contracts changed hands. Spreading accounted for 18,772 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market finished six to eight cents per bushel higher in follow-through buying on Friday.
Better-than-expected export sales numbers and speculative buying helped lift the market.
Rain is expected to fall in the Midwest over the weekend, which was supportive.
Corn recorded gains of three cents per bushel on Friday, enjoying spillover support from soybeans and solid export sales.
Rain in the U.S. Corn Belt has slowed harvest in many locations.
World ending stocks of corn have fallen since last month. According to the USDA, stocks declined by 1.50 million tonnes to 200.96 million tonnes.
South Korea bought 60,000 tonnes of corn in a tender.
Wheat finished eight cents stronger in speculative buying on Friday.
The market may also have been correcting slightly as it was coming off its lowest point in a month on Thursday.
Planting progress in the U.S. is behind the five-year average, which was supportive.
