By Dave Sims, Commodity News Service Canada
Winnipeg, August 4, 2017 – The ICE Futures Canada canola market posted gains to end the week, propped up by action in the Canadian currency.
The Canadian dollar was about half a cent lower, relative to its US counterpart, which made canola more attractive to out-of-country buyers.
Slow farmer selling underpinned prices while traders adjusted positions ahead of the three day weekend. Canadian markets will be closed Monday for a civic holiday.
Gains in US soyoil lent support to canola.
However, weather conditions in Western Canada and the US Plains are generally cooler than a few weeks ago, which has allowed canola and soybeans to recover a bit from the heat blast they experienced.
Weakness in US soybeans dragged on values.
About 6,564 canola contracts traded on Friday, which compares with Thursday when 9,719 contracts changed hands. Spreading accounted for 574 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
Soybeans were 1 to 4 cent weaker as more favourable weather conditions in the US Midwest continued to weigh on the market.
Trading was choppy as investors took positions ahead of the weekend. The dominant November contract finished at its lowest point since the last few days of June.
Informa Economics is estimating US crop production at 4.2 billion bushels with an average yield of 47.3 bushels an acre.
Corn ended roughly two to three cents higher in technical trade.
The corn market took strength from steadier soybean prices too.
The corn auction going on in China right now was slightly bearish for the market.
The corn harvest in Argentina is rated at being 69 percent complete, that’s up from last week’s rating of 63%.
Wheat was two to three cents lower with the September contract in Chicago at 4.54 per bushel.
Dry weather in the US northern plains should help spring wheat dry down.
The technical bias is pointed slightly lower for wheat right now.
The prospects for a large Russian wheat harvest dragged on values.