By Dave Sims, Commodity News Service Canada
Winnipeg, August 18 – THE ICE Futures Canada canola market finished stronger to end the week, pushed up by advances in vegetable oil markets, some speculative buying and slow farmer selling.
Canola enjoyed some technical support at the C$500 per tonne level.
US soybeans finished higher which underpinned values while traders were positioning themselves before the weekend.
Guesses continue to come in about the size of the upcoming canola harvest but no one knows for sure. This is creating some uncertainty as the country continues to chew through supplies.
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However, weather conditions remain relatively favourable, at least for the short-term in Western Canada and the US Midwest, which was bearish.
The Canadian dollar was over two-thirds of a cent stronger, relative to its US counterpart, which made canola less attractive to international buyers.
Around 9,487 canola contracts were traded on Friday, which
compares with Thursday when around 9,453 contracts changed hands.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
Soybeans finished three to seven cents higher in speculative trading on Friday.
The market took strength from US export sales which were 21.3 percent higher last week, compared to the week previous.
However, rains continue to fall across parched regions of the US Plains, which was bearish.
Soybean exports from Brazil’s northern area are up 24 percent from January to August of 2017, compared to last year.
Corn finished one cent higher with the December contract at 3.65 per bushel.
Commercial demand is lukewarm and new crop supplies seem to be holding at the moment.
More cases of bird flu are being reported in Asia. The Philippines have culled 600,000 poultry due to the outbreak and China has joined suit, announcing they will cull a quarter of a million. This won’t help prices for livestock feed.
Wheat was one to two cents higher with the September contract in Chicago at 4.16 per bushel.
Concerns over crop quality are some uncertainty into the market.
Cheap supplies from the Black sea region are creating headaches for US exporters. Australian
Wheat production is expected to be down this year due to drought.
