By Dave Sims, Commodity News Service Canada
Winnipeg, October 14 – THE ICE Futures Canada canola market finished weaker in volatile trading on Wednesday, due to losses in soybeans and the action of the Canadian currency.
The Canadian dollar was stronger relative to its US counterpart, which made canola less attractive to domestic crushers and foreign buyers.
Canola’s November contract momentarily broke through the key resistance point of C$480 per tonne before settling under it.
Funds were eager to buy on the way up, said a trader, but they largely stood on the sidelines when values were on the way down.
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“Because the crop is getting bigger, we’re going to have a bigger number from StatsCan at the end of the year,” he said.
However, on the other side of the coin, slight gains in US soyoil were supportive for values while farmer selling hasn’t been as aggressive as initially thought which was also supportive.
Commercial demand is steady and there are concerns about a lack of moisture in South American’s soybean crops, which were both bullish.
A total of 28,793 canola contracts were traded on Wednesday, which compares with Tuesday when 42,634 contracts changed hands. Spreading accounted for 14,934 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade closed three to five cents per bushel lower Wednesday as buyers eased up after pushing prices to fresh highs.
Analysts say harvest pressured prices Wednesday, despite signs of strong foreign demand.
According to the USDA, about 62 per cent of soybeans have been harvested in the US, which is bearish.
Soybean yield is reportedly high, which further pressured prices, however, market watchers say farmers do not want to sell at current prices.
SOYOIL prices settled higher on Wednesday.
SOYMEAL closed lower on Wednesday following neighbouring markets.
CORN futures closed three to five cents per bushel weaker Wednesday, mostly pressured by the nearby wheat market.
Analysts say corn prices felt harvest pressure, as of Sunday about 42 per cent of the US crop was harvested.
Market watchers say harvest lows may have been reached in previous sessions.
WHEAT as closed ten cents per bushel weaker on Wednesday as buying stalled due to a lack of demand.
Analysts say since US prices are far above the rest of the world, there is a lack of export demand for the commodity.
The rapid progression of winter wheat seeding also weighed on prices, as the USDA said seeding is about 64 per cent finished.
– Producer selling is light, analysts say.
– UK analysts say Russian farmers may start growing more corn, as an unintended effect of an wheat export tax.
