North American Grain/Oilseed Review: Canola mostly higher

The ICE Futures canola market was mostly higher at Friday’s close, with positioning ahead of the week- and month-end a feature.

The nearby November contract climbed sharply higher, settling well above the psychological C$1,000 per tonne level in thin volumes.

The gains in the more active deferred months were much more subdued, with some spillover strength coming from gains in Chicago Board of Trade soyoil and weakness in the Canadian dollar.

Ongoing concerns over tight supplies also remained a bullish influence underneath the market.

However, ideas that canola is looking overpriced at current levels tempered the advances.

About 11,130 canola contracts traded on Friday, which compares with Thursday when 29,997 contracts changed hands. Spreading accounted for 6,494 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, with gains in soyoil after it posted losses for most of the past week behind some of the gains.

Solid export demand was also supportive. The United States Department of Agriculture announced two large private export sales to unknown destinations, of 132,000 and 222,000 tonnes respectively.

Farmers in Argentina are reportedly just getting started seeding their next soybean crop, with 4.6 per cent of intended acres in the ground. Production is expected to be down on the year, as some acres are expected to switch out of beans and into corn.

CORN settled with solid gains, with positioning ahead of the week- and month-end a feature.

The USDA announced flash sales of 279,000 tonnes of corn to Mexico this morning, providing some support.

France’s corn harvest was just over half complete, at 54 per cent done. That was up 12 points on the week, but well off last year’s pace.

Meanwhile, dryness in Argentina was reportedly hampering the start of corn seeding there, with 28 per cent of intended acres in the ground.

Rain delays across the Eastern U.S. Corn Belt were slowing the last of the U.S. harvest.

WHEAT was mixed, with Minneapolis spring wheat hitting fresh highs and the winter wheats steady to lower.

Tight supplies of higher quality wheat remained supportive for the Minneapolis futures.

Rain delays for winter wheat planting in parts of the Eastern Corn Belt remained supportive, as farmers can’t get on to seed the wheat until their row crops come off.

The Western Producer

Tags: corn, canola, soybean, wheat, soyoil, futures, gains