North American Grain/Oilseed Review: Canola climbs higher

WINNIPEG, Feb. 12 (MarketsFarm) – The ICE Futures canola market posted solid gains on Friday, with the largest advances in the front months as bullish technical signals and concerns over tightening old crop supplies provided support.

Canola exports continue to run well ahead of the year-ago level, highlighting the need to ration demand going forward. The latest weekly data from the Canadian Grain Commission showing canola exports-to-date of 6.37 million tonnes up by 35 per cent from the same time the previous year.

Gains in Chicago Board of Trade soybeans and soyoil also provided some support, although canola outpaced the soy complex to the upside.

The Lunar New Year holiday in China limited some activity in the North American markets on Friday.

The canola market will be closed on Monday for Manitoba’s Louis Riel Day. U.S. markets will also be closed for President’s Day, while many other Canadian institutions will also be closed for provincial holidays.

About 14,417 canola contracts traded on Friday, which compares with Thursday when 27,446 contracts changed hands. Spreading accounted for 6,528 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, with positioning ahead of the long weekend a feature amid a lack of any fresh news.

Monthly crush data for the United States will be released next week Tuesday, and pre-report expectations are calling for another record monthly crush for January after hitting new records the previous two months.

While the advancing South American soybean harvest did put some pressure on values, rain-delays in Brazil have slowed progress slightly.

CORN futures started the week at their best levels in over seven years, but then fell after a bearish reaction to the U.S. Department of Agriculture’s monthly supply/demand estimates on Tuesday. Corn traded to both sides of unchanged on Friday, settling with small losses in the most active months as the market saw some consolidation after its recent volatility.

The USDA announced flash export sales of 195,000 tonnes of corn to Costa Rica and an additional 115,000 tonnes to Guatemala this morning.

WHEAT futures were mixed on the day, with the Chicago and Kansas City winter wheat markets finding support from ongoing weather concerns in some U.S. winter wheat growing regions.

The recent cold snap across the U.S. Plains could damage winter wheat crops in some areas, especially where snow cover is thin or non-existent.

Minneapolis spring wheat lagged to the upside, posting small losses in the most active months by the close.

The Western Producer

Tags: canola, North American Grain and Oilseed Review, canola market