By Phil Franz-Warkentin
WINNIPEG, Oct. 13 (MarketsFarm) – The ICE Futures canola market was stronger on Friday, seeing a continuation of Thursday’s bounce off nearby lows.
The nearby November contract settled above its 20-day moving average for the first time in more than a month, finishing the day at C$720 per tonne after testing psychological support around C$700 per tonne earlier in the week.
Gains in Chicago soyoil futures and ideas that recent losses in canola were overdone contributed to the advances. European rapeseed and Malaysian palm oil futures were also higher, although Chicago soybeans were lower.
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A slowdown in seasonal harvest pressure was also supportive, with most of the canola off the field across the Prairies.
There were an estimated 67,212 contracts traded on Friday, which compares with Thursday when 55,258 contracts traded. Spreading accounted for 50,838 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Friday, taking back some of Thursday’s gains as traders squared positions ahead of the weekend.
Weekly United States soybean export sales came in at just over a million tonnes, topping average trade estimates and marking the largest weekly sales in 38 weeks.
The USDA announced additional flash sales of 117,300 tonnes of soybeans and 100,000 tonnes of soymeal to unknown destinations this morning.
On Thursday the USDA lowered its average soybean yield estimate to 49.6 bushels per acre, which was down by a half bushel from September and at the lower end of trade expectations.
CORN futures also weakened, taking back Thursday’s gains despite solid weekly exports.
Weekly U.S. corn export sales topped expectations, with 910,000 tonnes of business for the current marketing year and an additional 87,000 tonnes for next year.
Average U.S. corn yields were pegged at 173 bushels per acre by the USDA on Thursday, down by point eight from September and at the lower end of expectations.
WHEAT was mixed, with gains in Chicago soft wheat and losses in the hard red wheats.
Weekly U.S. wheat export sales topped trade expectations at 651,000 tonnes, with flash business of 181,000 tonnes of soft wheat to China also reported.
While yesterday’s upward revision to U.S. wheat ending stocks weighed somewhat on values, the cut to world supplies remained supportive.
