By Phil Franz-Warkentin and Erin DeBooy, Commodity News Service Canada
Winnipeg, Aug. 3 (CNS Canada) – ICE Futures Canada canola contracts were mostly lower on Wednesday, as an early attempt at correcting higher proved short lived.
Advances in Chicago Board of Trade soybeans and soyoil provided underlying support for canola throughout most of the session, but the soy complex moved off its highs and canola drifted below unchanged.
Weather related production concerns were also somewhat supportive, with excess moisture causing problems in parts of Western Canada.
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However, crop prospects remain large overall, and the looming harvest limited the end user buying interest despite favourable crush margins, said traders.
Bearish technical signals contributed to the eventual declines in canola, although support held to the downside.
About 18,004 canola contracts were traded on Wednesday, which compares with Tuesday when 19,240 contracts changed hands. Spreading accounted for 5,862 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although wheat prices were adjusted after the close.
SOYBEAN futures at the Chicago Board of Trade strengthened on Wednesday with new signs of export demand.
Prices rose just over 2 US cents, with the September contract closing at US$9.7325 per bushel.
US private exporters sold a total of 697,200 metric tonnes of soybeans for delivery to unknown destinations and China, according to the USDA, boosting prices.
A hotter outlook for the Midwest is expected, with the above-average temperatures supporting prices.
However, expectations US farmers will harvest large crops limited gains.
SOYOIL prices closed higher on Wednesday.
SOYMEAL closed stronger on Wednesday.
CORN futures rose up to 1 US cent on Wednesday, with the September contract pulling just above daily lows to sit at US$3.25 per bushel.
Fresh signs of export demand pushed up prices despite predictions US farmers will harvest massive corn crops.
Private exporters booked sales of 290,000 tonnes of corn for delivery to unknown destinations during the 2016/17 crop year, according to the USDA.
Favourable weather forecasts for the Farm Belt limited gains.
WHEAT closed higher on Wednesday, rising 8 to 9 US cents per bushel.
Prices for the September contract hit daily highs of US$4.15 before closing at US$4.1025 per bushel.
Reports that Germany’s grain crop could see yield losses of up to 20 per cent this year boosted prices. In addition to France’s flood-damaged wheat crops, the losses could put a significant dent in global production.
-Two new wheat classes have been introduced, according to the Canadian Grain Commission. The Canada Northern Hard Red class includes new varieties of wheat with low gluten strength still good for milling purposes, and the Canadian Western special purpose wheat class is for varieties for ethanol or livestock feed markets.
-Japan and South Korea are suspending new purchases of US wheat until a new test for genetically engineered wheat can be implemented, according to reports. It should take two to three weeks for Japan to get the test in place, while South Korea should start testing as soon as this week.
