By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Nov. 20 (MarketsFarm) – The ICE Futures canola market was mostly stronger on Friday, hitting fresh highs in the nearby January contract for the fourth-straight session as speculators added to long positions and end-users bid up the market in order to secure supplies.
Gains in Chicago Board of Trade soybeans also provided spillover support, with solid crush margins keeping canola attractively priced compared to other oilseeds despite the ongoing gains.
However, CBOT soyoil was softer on the day, putting some pressure on the market.
Profit-taking at the highs also tempered the upside, as traders adjusted positions ahead of the weekend.
About 29,363 canola contracts traded on Friday, which compares with Thursday when 26,584 contracts changed hands. Spreading accounted for 22,716 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade hit fresh four-year highs on Friday, as solid export demand and South American weather concerns provided support.
While parts of Brazil and Argentina received much needed rain over the past week, conditions remain on the dry side in many soybean growing regions and more moisture will be needed in the drought stricken areas.
The South American dryness is kept end-users focused on buying from the United States, but those supplies are also tightening and the market is working to ration demand.
The products failed to follow soybeans higher, with losses in soyoil and a steady tone in soymeal tempering the upside in soybeans.
CORN futures hit their strongest levels since July 2019, finding some spillover support from the advances in soybeans and the dry South American weather.
Solid export demand contribute to the gains in corn. The U.S. Department of Agriculture reported private export sales of 158,000 tonnes of corn to Mexico this morning, and an additional 131,000 tonnes to other unknown destinations.
WHEAT futures were mixed, with gains in the winter wheats and losses in Minneapolis spring wheat.
Solid export demand contributed to the gains, with Thailand buying 60,000 tonnes of U.S. wheat in its latest tender.
However, forecasts calling for beneficial precipitation across the U.S. Plains over the weekend put some pressure on values. Rising production prospects out of Australia were also bearish.
Futures Prices as of November 20, 2020
Prices are in Canadian dollars per metric ton