North American Grain/Oilseed Review: Canola settles higher after early losses

The ICE Futures canola market managed to settle with small gains on Friday, recovering from earlier losses late in the day.

Speculators were behind much of the activity throughout the session, adjusting their positions ahead of the weekend.

Losses in Chicago Board of Trade soybeans put some spillover pressure on the Canadian oilseed. However, gains in soyoil provided some underlying support. Malaysian palm oil was also up overnight.

Weakness in the Canadian dollar was also supportive. While export demand is being rationed at current price levels, solid demand from domestic crushers contributed to the eventual gains.

About 24,336 canola contracts traded on Friday, which compares with Thursday when 26,697 contracts changed hands. Spreading accounted for 13,534 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were weaker on Friday, seeing a correction after posting sharp gains earlier in the week.

Forecasts calling for some much needed rain in Argentina contributed to the selling pressure, although hot and dry conditions in the country have likely already cut into the production prospects with over a quarter of the soybeans in South America thought be in poor shape.

Weekly United States soybean export sales came in at the low end of trade expectations, at 671,000 tonnes. However, the U.S. Department of Agriculture announced additional private export sales this morning of 132,000 tonnes to China.

CORN traded to both sides of unchanged, with the bias higher in the most active front months by the close.

Weekly U.S. corn export sales topped trade estimates, at just over a million tonnes. The USDA announced additional flash sales this morning of 247,800 tonnes to unknown destinations this morning.

WHEAT settled with small losses, with profit-taking ahead of the weekend behind some of the activity.

Weekly U.S. wheat export sales came in at just over 380,000 tonnes, which was the best of the past month and at the high end of trade expectations.

Cold temperatures across key U.S. winter wheat growing areas remained somewhat supportive.

Geopolitical tensions between Russia and Ukraine also kept some caution in the wheat market, although talks in Geneva were helping ease those concerns somewhat.

The Western Producer

Tags: soybean futures, corn futures, soyoil, palm oil, canola market, wheat futures