North American grain/oilseed review: Canola strengthens into weekend

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm — The ICE Futures canola market was stronger on Friday, as speculative positioning and solid end user demand amid ideas recent losses were overdone provided support.

Weekly Canadian canola exports of 174,800 tonnes were up 24 per cent from the previous week, according to Canadian Grain Commission data, with crop-year-to-date exports running two million tonnes ahead of the year-ago pace at 4.2 million tonnes.

Gains in Chicago soybeans provided spillover support, although soyoil was weaker on the day. European rapeseed was mixed and Malaysian palm oil lower.

The canola market will be closed next week for Christmas and Boxing Day, while operating at reduced hours on Dec. 24. Positioning ahead of the holidays accounted for some of the activity.

There were an estimated 49,463 contracts traded on Friday, which compares with Thursday when 48,700 contracts traded. Spreading accounted for 34,296 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, underpinned by speculative short covering ahead of the weekend and seeing continuation of Thursday’s bounce off four-year lows.

However, large South American crop prospects remained a bearish influence overhanging the market with generally favourable growing conditions in both Brazil and Argentina.

Uncertainty over U.S. biofuel policy also continued to temper the upside in soybeans, with soyoil still lower on the day.

CORN futures followed soybeans higher, with pre-weekend positioning a feature.

The United States Department of Agriculture reported private export sales of 150,000 tonnes of corn to Colombia this morning.

U.S. corn export sales are running about 31 per cent ahead of last year’s pace so far this marketing year, keeping the market well supported.

However, broad strength in the U.S. dollar internationally may limit some of that demand going forward.

WHEAT was narrowly mixed, lagging beans and corn to the upside as values saw some consolidation just above nearby lows.

Russia cut its export quota for the February through June period to only 10.6 million tonnes, which compares with 29 million tonnes last year.