By Jade Markus and Erin DeBooy, Commodity News Service Canada
Winnipeg, September 6 (CNS Canada) – ICE Futures Canada canola ended weaker on Tuesday, as sharp advances in the Canadian dollar pressured the market.
The loonie had gained more than 0.75 per cent against its US counterpart by canola’s close, which is bearish.
Pre-report positioning ahead of Statistics Canada’s stocks report, due out on Wednesday, was also a feature.
Harvest pressure added to the declines, though reports of reduced production in some areas due to excess moisture could underpin prices moving forward.
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Advances in the Chicago Board of Trade soy complex limited declines on Tuesday.
About 17,139 canola contracts traded on Tuesday, which compares with Friday when 17,617 contracts changed hands. Spreading accounted for about 3,562 of the contracts traded.
Durum and barley futures were untraded and unchanged, while milling wheat was revised lower after the close.
SOYBEAN futures at the Chicago Board of Trade jumped more than seven US cents per bushel on Tuesday, settling just below daily highs at US$9.5975 per bushel for the November contract.
US federal data showed robust demand for soybean crops, giving prices a boost.
Dry weather in Brazil has been driving soybeans higher, as well as talks of cold weather moving into the Midwest.
SOYOIL strengthened on Tuesday, up with palm oil, supported by strong export data and demand from private sources.
SOYMEAL strengthened on Tuesday.
CORN futures traded both sides of unchanged on Tuesday, with the December contract remaining at US$3.2850 per bushel.
Expectations for huge supplies continue to weigh on prices, with domestic corn shippers likely to see an increase in competition from rivals in the Black Sea region this fall.
Some traders, however, believe the crop has been overestimated, and that production and yields could be anywhere from five to 15 per cent less than the USDA estimates, adding some support to the market.
WHEAT dropped up to two US cents on Tuesday, settling at US$3.9850 per bushel for the December contract after daily highs pushed over US$4.00 per
Prices continue to sink lower as investors focus their attention on massive US wheat crops and growing competition for export business.
Russia has cancelled its export tax on wheat, suggesting stiffer competition for sales, also weighing on prices.
-Growers in Northern UK are about a third of the way through wheat harvest,
with average yields so far.
– Falling wheat production in India over the past two years have reduced
stocks to the lowest level in nearly a decade, prompting the country to step
up international purchases significantly in the coming months. The increase
of imports could provide a boost to low global prices.
