By Glen Hallick
Glacier FarmMedia – Intercontinental Exchange canola futures closed out Friday on a positive note after bouncing either side of unchanged.
Canola continued to ride the market’s generally positive attitude toward last week’s Canada-China agreement on reducing tariffs.
There was also spillover from gains in MATIF rapeseed and the Chicago soy complex. However, increases in soyoil faded from earlier highs. The vegetable oils were underpinned by strength in crude oil, but Malaysian palm oil finished lower.
Improved weekly canola exports of 288,200 tonnes were reported by the Canadian Grain Commission. However, the cumulative total of 3.21 million tonnes was nearly 1.9 million less than a year ago.
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The March canola contract remained above most of its moving averages, still lagging behind its 100-day average.
The Canadian dollar was stronger on Friday afternoon, with the loonie at 72.94 U.S. cents compared to Thursday’s close of 72.47.
There were 54,536 contracts traded on Friday, compared to 36,918 on Thursday. Spreading accounted for 46,926 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change
Canola Mar 651.70 up 4.50
May 662.60 up 4.80
Jul 669.30 up 4.70
Nov 663.00 up 6.80
SOYBEAN futures at the Chicago Board of Trade were higher on Friday, as a good export sales report and a winter storm across much of the United States provide support.
The U.S. Department of Agriculture issued its export sales report for the week ended Jan. 15. Old crop soybeans hit a marketing-year high of 2.45 million tonnes, of which more than 53 per cent were sold to China. Trade expectations were total soybean sales between 1.50 million to three million tonnes.
Old crop U.S. soymeal export sales came to 412,700 tonnes, with market guesses from 200,000 to 500,000 tonnes. Those for soyoil were 10,500 tonnes on predictions of 5,000 to 25,000 tonnes.
Brazilian consultancy Hedgepoint upped its call on the country’s soybean harvest by 1.5 million tonnes at 179.50 million.
Argentina reported its soybean crop was 98 per cent planted, down one point from a year ago. The country’s sunflower harvest reached 19 per cent finished, up eight points over last year.
CORN futures were up as well on Friday, in sympathy with soy and wheat.
At 4.01 million tonnes, U.S. corn export sales hit a marketing-year as well as a 35-year high, exceeding trade expectations of 1.90 million to 3.10 million tonnes.
Argentina said its corn planting reached 95 per cent complete, one point up from this time last year.
WHEAT futures swung higher on Friday, with the winter wheats posting double-digit gains.
Export sales of old crop U.S. wheat came to 618,100 tonnes, surpassing trade guesses of 150,000 to 450,000 tonnes.
Argentina said its wheat harvest is finished.
