By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, Sept. 23 (CNS Canada) – ICE Futures Canada canola contracts were down on Friday, as a sharp drop in Chicago Board of Trade soybeans and soyoil weighed on values.
Expectations for a large Canadian crop, despite harvest delays in parts of the Prairies, added to the bearish tone, according to participants.
Forecasts calling for heavy rains in parts of Saskatchewan over the weekend were somewhat supportive on the one hand, but were also thought to be bringing in increased pre weekend hedges.
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Yesterday’s news that China would allow Canadian canola shipments containing up to 2.5 per cent dockage to continue until at least 2020 remained a supportive influence as well.
Sharp weakness in the Canadian dollar helped limit the losses as well.
Milling wheat, durum, and barley were all untraded.
About 24,536 canola contracts were traded on Friday, which compares with Thursday when 37,359 contracts changed hands. Spreading accounted for 10,806 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed 15 to 21 cents per bushel lower on Friday, as favourable weather in parts of the US Midwest pressured the market.
Drier conditions will help farmers make harvest progress, which is bearish.
Strength in the US dollar added to the downside, as a stronger greenback makes the country’s commodities less appealing to international buyers.
Spillover weakness from the cash markets was also a feature, analysts say.
SOYOIL prices were weaker on Friday, following losses in Malaysian palm oil.
SOYMEAL closed weaker on Friday.
CORN futures were about one cent per bushel lower on Friday, also pressured by favourable harvest weather.
China is expected to introduce anti-dumping duties on dried distillers grains, which is bearish, as corn is used in the commodity.
However, market watchers say investor short-covering limited losses.
WHEAT closed mostly unchanged on Friday.
Gains in the US dollar had a bearish effect on prices, while an import tax change in India limited losses.
India has reduced its wheat import tax, according to reports out of the country, which is bullish.
– Jordan has put out a tender for 100,000 metric tonnes of hard wheat, market watchers say.
– Egypt has bought 240,000 metric tonnes of Russian wheat, analysts say.
