North American Grain/Oilseed Review: Canola down, testing support

Reading Time: 2 minutes

Published: October 8, 2015

By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada

Winnipeg, Oct. 8 – ICE Futures Canada canola contracts were weaker on Thursday, as chart-based speculative selling and losses in the Chicago soy complex weighed on values.
Strength in the Canadian dollar, which was up nearly half a cent relative to its US counterpart to trade just below 77 US cents, added to the softer tone in canola, according to participants.
Steady producer selling put further pressure on values, as harvest operations wrap up across many areas of Western Canada. However, weather related delays were slowing the final stages of this year’s harvest in some parts of Alberta and Saskatchewan.

Read Also

North American grain/oilseed review: Canola falls Friday

ICE Futures canola market was weaker on Friday, settling at its weakest levels in two weeks. Speculative selling was a…

Solid commercial demand on the other side did help limit the losses. Chart support also held to the downside, with the November contract settling just above the psychological C$470 per tonne mark.
The USDA releases its latest monthly supply/demand report on Friday, and positioning ahead of the data was a feature in the North American agricultural futures. Canadian markets will be closed Monday for Thanksgiving and traders were also squaring positions ahead of the long weekend.
About 16,198 canola contracts were traded on Thursday, which compares with Wednesday when 17,016 contracts changed hands.
Milling wheat, durum, and barley were all untraded.

SOYBEAN futures at the Chicago Board of Trade closed six to nine cents per bushel lower as the US harvest continued.

Favourable growing weather had a bearish effect on the commodity, as market watchers say farmers are making rapid progress.
However, some losses were prevented as traders expect yields to be reduced in tomorrow’s USDA supply and demand report.

SOYOIL prices settled lower on Thursday, tracking Malaysian palm oil.

SOYMEAL closed lower on Thursday following neighbouring markets.

CORN futures closed four cents per bushel weaker Thursday as markets positioned ahead of the USDA report, and amid harvest pressure.
The corn harvest thus far is lagging, but forecasts for warm, rain-free weather next week in the Corn Belt were bearish.
Analysts say yield reports have been variable, but conclude that conditions have improved from earlier in the season, which further pressured prices.

WHEAT futures in Chicago closed three to five cents per bushel weaker Thursday on profit-taking ahead of the USDA report.

Analysts say traders are liquidating, especially since wheat has had a recent rally, and many expect the report to be bearish for wheat.
Favourable planting conditions for winter wheat added to the bearish tone.
– Saudi Arabia has tendered for 715,000 tonnes of hard wheat, analysts say.
– Japan bought 119,141 tonnes of wheat from Australia, the US, and Canada for winter shipment. Canada will be providing the largest amount.

About the author

GFM Network News

GFM Network News

Glacier FarmMedia Feed

Glacier FarmMedia, a division of Glacier Media, is Canada's largest publisher of agricultural news in print and online.

explore

Stories from our other publications