By Phil Franz-Warkentin and Dave Sims, Commodity News Service Canada
Winnipeg, May 12 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Friday, with the largest gains in the nearby July contract as concerns over tightening old crop supplies provided support.
Gains in Chicago Board of Trade soyoil, weakness in the Canadian dollar, and speculative fund buying all contributed to the strength in canola, according to participants.
Ongoing production uncertainty in Western Canada was also supportive, as showers continue to cause seeding delays in some areas and unharvested fields from 2016 remain a concern.
However, farmers are reportedly making good progress where the weather allows, which limited the upside potential. Losses in Chicago soybeans and bearish short-term technical signals also weighed on prices.
About 9,782 canola contracts traded on Friday, which compares with Thursday when 17,556 contracts changed hands. Spreading accounted for 3,892 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
SOYBEAN futures at the Chicago Board of Trade finished three to four cents lower as another report came in which raised Brazilian production numbers. Safras and Mercado pegged the 2016/17 crop at 113.4 million tonnes, higher than their April estimate of 111.5 million tonnes.
The Rosario Grain Exchange also raised its estimate for Argentina’s soybean production. It pegged production at 57 million tonnes, which was up one million tonnes from the previous forecast.
Some traders squared positions before the weekend.
SOYOIL futures climbed 30 to 35 points on Friday.
SOYMEAL futures finished lower on Friday.
CORN futures in Chicago ended one to two cents per bushel higher to end the week. Values were pressured after the Buenos Aires Grain exchange hiked its estimate for Argentine corn production to 39 million bushels.
Recent rains have delayed planting in the US, which was supportive.
However, farmers have made recent progress in Ukraine with the crop there estimated to be 84 per cent planted.
WHEAT futures in Chicago moved one cent lower as traders engaged in chart-based trading.
The market is still trying to get a handle on the extent of the damage that was done to the hard red wheat crop in the western portion of the US Southern Plains by the May 1 blizzard.
Large supplies of global wheat also pressured prices.