By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Aug. 15 (CNS Canada) – ICE Futures canola contracts were weaker on Wednesday, taking back all of Tuesday’s gains as losses in the Chicago soy complex weighed on values.
The looming harvest and a lack of fresh weather worries in Western Canada added to the softer tone in canola, according to participants. However, persistent concerns over heat and dryness in many areas tempered the declines, as yields likely won’t live up to earlier expectations.
Weakness in the Canadian dollar also provided some underlying support, as the currency fell by roughly half a cent relative to its United States counterpart.
Read Also
North American grain/oilseed review: Canola climbs higher to start week
Glacier FarmMedia — The ICE Futures canola market was stronger on Monday, rising off the five-month lows hit last week…
About 6,787 canola contracts traded, which compares with Tuesday when 10,548 contracts changed hands. Spreading accounted for 1,316 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Wednesday, with forecasts calling for some much needed rain across parts of the Midwest accounting for some of the selling pressure. Strength in the United States dollar index added to the declines as the rising currency makes U.S. exports less attractive to global buyers.
Expectations for increased soybean acreage in Brazil this year were also bearish.
However, solid crush data that beat market expectations provided some support. The U.S. monthly soybean crush came in at its second highest level on record in July, at 167.7 million bushels, according to a report from the National Oilseed Processors Association.
CORN futures were also pressured lower by the Midwestern rain forecasts, although the December contract was only down half at the closing bell.
The U.S. Department of Agriculture reported export sales of 114,000 tonnes of corn to unknown destinations this morning, and the good export demand helped keep corn within a narrow range.
WHEAT futures were all weaker on Wednesday, with forecasts calling for rain in some dry winter wheat growing regions of the southern U.S. Plains behind some of the selling pressure as the precipitation should help moisture conditions improve ahead of seeding.
Ideas that U.S. wheat is looking expensive compared to other global sources also weighed on values.
