North American grain/oilseed review: Canola ends week on firm footing
By Phil Franz-Warkentin
Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was stronger on Friday, as gains in outside markets, chart-based positioning and optimism over improving Canadian trade relations with China were supportive.
The nearby July contract settled well above C$700 per tonne for the first time since Monday’s selloff, which was bullish from a technical standpoint. New crop November was also trading back above some key chart levels.
Advances in crude oil lent support to world vegetable oil markets, with strength in Chicago soyoil adding to the firmer tone in canola.
Optimism over improving trade relations between Canada and China, after a call between Canadian Prime Minister Mark Carney and Chinese Premier Li Qiang, was also supportive.
There were 51,875 contracts traded on Friday, which compares with Thursday when 40,707 contracts changed hands. Spreading accounted for 32,082 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger Friday, with shifting weather forecasts, gains in crude oil and trade optimism providing support.
Recent talks between the United States and China have raised expectations for easing trade tensions between the two countries, accounting for much of the buying interest in the grains and oilseeds.
Meanwhile, forecasts are turning hotter and drier for parts of the Midwest. The dryness could cut into yield potential if germination and early growth is stressed.
CORN was also underpinned by the drier Corn Belt weather, although there was rain in the forecast for some regions.
The Buenos Aires Grain Exchange reported Argentina’s corn harvest was nearing the halfway mark at 44 per cent done. They’re predicting production at 49 million tonnes.
WHEAT futures were higher across the board, with cooler temperatures in parts of the U.S. Plains said to be slowing crop development over the past week.
The escalating Russia/Ukraine conflict was also supportive, creating uncertainty over grain movement through the Black Sea.
