By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Nov. 17 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Friday, finding some spillover support from a rally in Chicago Board of Trade soybeans.
Solid end user demand, bullish technical signals, and a weaker tone in the Canadian dollar all contributed to the gains in canola.
However, a softer tone in CBOT soyoil and ample supplies in the commercial pipeline tempered the advances.
Visible commercial canola stocks rose to 1.4 million tonnes in the latest weekly Canadian Grain Commission report, from 1.3 million the previous week, as farmers delivered roughly 400,000 tonnes of canola into the pipeline and exports were down considerably.
Read Also
North American grain/oilseed review: Canola falls Friday
ICE Futures canola market was weaker on Friday, settling at its weakest levels in two weeks. Speculative selling was a…
About 18,173 canola contracts traded on Friday, which compares with Thursday when 16,078 contracts changed hands. Spreading accounted for 10,368 of the contracts traded.
Soybean futures at the Chiago Board of Trade posted solid gains on Friday, with chart-based buying a feature as the market realigned itself with some of the longer-term moving averages ahead of the weekend.
However, there was no real fresh fundamental news behind the bounce, with relatively favourable South American crop prospects keeping a lid on the advances.
Corn moved higher in sympathy with soybeans, as the market continued to correct off of the contract lows hit earlier in the week.
However, just as in soybeans, large, newly harvested U.S. supplies and good South American crop prospects put some pressure on values.
All three U.S. wheat markets were higher, with speculative short covering and weakness in the U.S. dollar index providing some support.
Expectations for a decline in U.S. winter wheat acres this year added to the firmer tone.
However, stiff export competition out of Russia remained a bearish influence in the background.
