North American Grain/Oilseed Review: Canola Climbs Higher In Late Trade

By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada

Winnipeg, Feb. 2 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Thursday, as speculative buying came forward shortly before the close to provide support.

Canola held near unchanged for most of the session, before turning higher in the last half hour. Gains in Chicago Board of Trade soyoil provided some underlying support, while positioning ahead of Friday’s Statistics Canada stocks report was also thought to be a factor.

The report will provide a clearer picture of 2016 production and usage-to-date.

On the other side, a firmer tone in the Canadian dollar put some pressure on canola, limiting the advances.

Expectations for a large South American soybean crop and ideas that Canadian farmers will plant more canola in 2017 weighed on values as well.

About 18,768 canola contracts were traded on Thursday, which compares with Wednesday when 23,296 contracts changed hands. Spreading accounted for 12,066 of the contracts traded.

Milling wheat, durum, and barley were all untraded, although prices were revised after the close.

SOYBEAN futures at the Chicago Board of Trade closed unchanged to about eight cents per bushel higher on Thursday.

Steady exports reported by the United States Department of Agriculture (USDA) in the week ending January 26 underpinned the market.

Net sales of 623,900 metric tonnes for 2016/2017 were in line with analyst expectations.

However, favourable South American weather limited the market’s upside.

SOYOIL prices closed higher on Thursday.

SOYMEAL closed weaker on Thursday.

CORN futures declined about one cent per bushel on Thursday, pressured by profit-taking after advances in previous sessions.

Weakness in the crude oil market added to the downside.

However, strong export sales reported by the USDA limited losses.

Net sales of 1.144 million metric tonnes for 2016/2017 were above analyst-expectations.

WHEAT closed about one to two cents per bushel stronger on Thursday, propped up by export sales, which came in at the high-end of analyst expectations.

Net sales reported by the USDA in the week ending January 26 totalled 451,200 metric tonnes for delivery in the 2016/2017 marketing year.

Commodity Future Prices

Canola
2017-02-02 13:19
Price Change
Mar515.203.10
May522.703.50
Jul525.803.60
Nov504.105.20
Milling Wheat
2017-02-02 14:05
Price Change
Mar237.002.00
May241.004.00
Jul244.006.00
Oct231.007.00
Durum
2017-02-02 14:05
Price Change
Mar297.001.00
May299.001.00
Jul298.000.00
Oct268.001.00
New Barley
2017-02-02 14:05
Price Change
Mar135.000.00
May137.000.00
Jul138.000.00
Oct138.000.00

Prices are in Canadian dollars per metric ton

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