By Jade Markus and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, August 18 (CNS Canada) – ICE Futures Canada canola ended weaker on Thursday, as the Canadian dollar advanced against its US counterpart.
The loonie moved above 78 US cents by close, which is bearish for canola, as it makes the commodity less appealing to international buyers.
However, overnight rains in parts of western Canada limited losses.
Market watchers say showers in southern Manitoba and eastern Saskatchewan could hurt crop potential, especially as harvest nears, which is bullish.
Read Also
North American grain/oilseed review: Canola rises Tuesday
Glacier FarmMedia — The ICE Futures canola market was stronger on Tuesday, moving back above some key technical levels in…
About 15,942 canola contracts traded on Wednesday, which compares with Thursday when 16,836 contracts changed hands. Spreading accounted for about 2,764 of the contracts traded.
Barley was untraded and unchanged, while milling wheat and durum were revised lower after the close.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were narrowly mixed on Thursday, settling within two cents of unchanged.
Weekly US soybean export sales were down on the week, which put some pressure on values. However, business is still brisk overall, with China continuing to show solid demand.
Uncertain production prospects kept some caution in the market as well, although conditions remain relatively favourable across most of the US farm belt.
SOYOIL futures were up on Thursday, as concerns over tight global vegetable oil supplies continued to provide support.
SOYMEAL futures were weaker on Thursday, with spreading against soyoil a feature.
CORN futures in Chicago were up by one to three cents per bushel on Wednesday, recovering from earlier declines.
Weekly US corn export sales of about 1.2 million tonnes (old and new crop combined) were in line with trade expectations. An additional 100,000 tonne sale to ‘unknown destinations’ was also reported.
The good US crop prospects were a bearish influence in the background.
WHEAT futures in Chicago were up by one to two cents per bushel on Thursday, amid ongoing concerns over the size of the European crop.
Weather-related harvest delays in the northern tier states were especially supportive for spring wheat in Minneapolis, which spilled into the Chicago market as well.
Weekly US wheat exports, of 489,500 tonnes, were in line with market expectations.
– France, typically known as a wheat exporter, is importing wheat from both Bulgaria and the United Kingdom, according to customs data. A shipment from Greece is also expected later in the month.
– South Korea is back buying US wheat after briefly halting purchases due to concerns over unapproved GMOs in US fields.
– Japan tendered to purchase 87,000 tonnes of wheat, with the US, Canada, and Australia filling the tender.
