North American Grain/Oilseed Review: Canola up ahead of long weekend

The ICE Futures canola market was stronger on Friday, with the largest gains in the old crop contracts as gains in Chicago Board of Trade soyoil provided some spillover support and traders adjusted positions ahead of the long weekend.

The canola market will be closed Monday for Manitoba’s Louis Riel Day, while markets in the United States will close for Presidents’ Day. Provincial holidays across most of Canada will also see many other markets and financial institutions closed.

Ongoing concerns over tight canola supplies and the need to ration demand remained supportive, although end-users are thought to be well covered for the time being.

About 14,629 canola contracts traded on Friday, which compares with Thursday when 15,438 contracts changed hands. Spreading accounted for 8,120 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, as solid export demand provided support and traders adjusted positions ahead of the Presidents’ Day long weekend.

The United States Department of Agriculture reported private export sales this morning of 198,000 tonnes of soybeans to unknown destinations.

Ongoing concerns over the state of the South American crop added to the strength in soybeans, with heat and dryness during the growing season cutting into yield prospects despite nearby weather forecasts calling for some more moisture.

The International Grain Commission released updated production estimates yesterday that remained supportive on Friday, lowering their forecast for world crop by 15 million tonnes, to 353 million.

CORN was underpinned by South American crop concerns, along with spillover from the gains in soybeans and wheat.

A recovery in global crude oil prices, after earlier weakness, contributed to the strength in corn given the grain’s relation to ethanol production.

WHEAT was mixed, with gains in the Minneapolis and Kansas City hard red contracts and losses in Chicago soft wheat.

The Russia/Ukraine situation remained at the forefront of the wheat market, as the two countries are major exporters.

Forecasts calling for some winter storms across the Southern U.S. Plains over the next week should bring some moisture to the dry region, although colder temperatures could also damage the dormant crops.

The Western Producer

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