Glacier FarmMedia COVID-19 & the Farm

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

By Phil Franz-Warkentin, MarketsFarm

Winnipeg, Oct. 11 (MarketsFarm) –ICE Futures canola contracts were stronger on Friday, but settled well off of their highs for the day as strength in the Canadian dollar countered spillover support from gains in Chicago Board of Trade soybeans.

A winter storm hitting southern Manitoba and the northern
United States provided underlying support for both soybeans and canola, according to participants.

Optimism over trade negotiations underway between the U.S. and China was also supportive for the grains and oilseeds on Friday.

However, a sharp rally in the Canadian dollar, which was up by about two-thirds of a cent relative to its U.S. counterpart, tempered the upside in canola.

Canadian markets will be closed Monday, Oct. 14, for Thanksgiving and positioning ahead of the weekend was a feature.

About 37,605 canola contracts traded on Friday, which compares with Thursday when 40,156 contracts changed hands. Spreading accounted for 28,820 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade posted solid gains on Friday, as heavy snow across the northern United States hurt the prospects for soybean crops in the region.

Positive trade talks between the U.S. and China added to the firmer tone, although the market participants were still waiting for concrete developments on the trade front.

Yesterday’s U.S. Department of Agriculture supply/demand estimates remained supportive as well, as ending stocks were forecast to tighten this crop year. The agency lowered its U.S. soybean carryout forecast for 2019/20 to 460 million bushels, from 640 million last month.

CORN recovered from Thursday’s losses to hit fresh two-month highs.

Freezing temperatures across much of the Corn Belt and the snow in the northern growing regions provided the catalyst for the move higher.

However, Thursday’s bearish USDA report and unexpected increase in average yield forecasts for the corn crop tempered the upside.

WHEAT futures were stronger on Friday, with the gains in corn providing some spillover support. Chart-based buying added to the gains, with some stops hit on the way up.

Concerns over the quality of the North American spring wheat crop contributed to the gains, with a sizeable portion still unharvested and dealing with adverse early winter weather.

Commodity Future Prices

Price Change

Prices are in Canadian dollars per metric ton

COPA Medallion COPA finalist in 2012, 2014 and 2015.
©2020 AGCanada is a production of Glacier FarmMedia Limited Partnership. Any affiliated or third party content is the property of its respective owner and is used with permission.
Please refer to Copyright Page for details.
Click here to view our Website Terms of Use.