By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, August 27 – ICE Futures Canada canola contracts were up at Thursday’s close, as gains in CBOT soyoil provided some spillover support.
Advances in crude oil and the North American equity markets added to the firmer tone as canola corrected off of its nearby lows.
The need to keep some weather premiums in the Canadian futures helped underpin canola as well, as the market will likely need to ration demand going forward, according to participants.
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Strength in the Canadian dollar and a generally bearish technical outlook also helped keep a lid on the canola market, according to participants.
About 16,863 canola contracts were traded on Thursday, which compares with Wednesday when 26,797 contracts changed hands.
Milling wheat, durum, and barley were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed eight to 16 cents per bushel higher Thursday as many global stock markets rallied.
A weekly export report from the US Department of Agriculture also supported prices. On Thursday the USDA said net sales to foreign markets for 2014-15 and 2015-16 delivery totalled 1.3 million metric tonnes, which is better than analyst expectations.
SOYOIL prices settled stronger on Thursday as crude oil prices gained.
Higher crude oil prices are bullish for soy as it can be refined into biodiesel.
SOYMEAL closed mixed Thursday.
CORN futures closed one to three cents per bushel stronger Thursday, also supported by reduced economic concerns.
Corn prices also rallied due to data from the weekly export report, as export increases were reported for Japan, Mexico, Panama, Taiwan, and Peru.
WHEAT futures in Chicago closed one to five cents per bushel lower Thursday, as the International Grains Council announced that global grain supplies will reach historic highs in the 2015-16 season.
Wheat prices have been plagued by a global supply glut and a lack of demand, and prices have been consistently moving lower as sellers try to find demand.
– Egypt is tendering an unspecified amount of wheat for October 1-10 shipment, analysts say.
– Market watchers say it’s early in the crop year, but sales continue to be less than needed to meet USDA projections.
