By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 21 (MarketsFarm) – The ICE Futures canola market was stronger on Friday, underpinned by supportive technical signals and gains in the Chicago soy complex.
The largest gains were in the nearby November contract, with intermonth spreading a feature as participants worked to exit the front month as options were set to expire.
Thursday’s move above key resistance levels was bullish from a chart standpoint, with wide crush margins also keeping end users in the market.
Weekly Canadian canola exports of 407,300 tonnes were nearly double what moved the previous week, according to the latest Canadian Grain Commission data. Domestic disappearance during the week ended Oct. 16 of 246,600 tonnes was up by 65 per cent from the previous week.
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ICE canola stronger at midday Thursday
Glacier FarmMedia — The ICE Futures canola market was stronger at midday Thursday, correcting higher after touching its lowest levels…
Strength in the Canadian dollar put some pressure on values, tempering the gains.
About 40,985 canola contracts traded on Friday, which compares with Thursday when 35,315 contracts changed hands. Spreading was a feature, accounting for 31,504 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, as broad gains in global equity markets and a softer tone in the United States dollar provided support ahead of the weekend.
While seasonal harvest pressure was likely keeping a lid on the upside, end user demand in the cash market was reportedly strong as buyers work to secure supplies before farmers shut their bins for the winter.
There were no flash soybean sales announced on Friday, but business over the past week has been solid.
CORN was stronger on Friday, recovering from earlier losses as the downturn in the U.S. dollar made exports more attractive to international buyers.
Activity in the cash market was also supportive for corn, with good end user demand coming forward in the face of the seasonal harvest pressure.
WHEAT was mixed at the close, with gains in Chicago soft wheat and losses in the hard red wheats.
Shifting sentiment on Ukrainian grain exports remained at the forefront of the market, with talks over the past week on keeping the Black Sea corridor open thought to be constructive.
Declining production estimates out of Argentina remained supportive, with the latest projections out of the country of only 15 million tonnes well off the 23 million grown last year as drought and frost hurts crops there.
