By Jade Markus and Phil Franz-Warkentin, Commodity News Service Canada
ICE Futures Canada canola ended weaker on Tuesday, pressured by advances in the Canadian dollar.
The loonie had gained about half a cent against its US counterpart by close on Tuesday, following six sessions of gains.
A stronger Canadian dollar is bearish for canola values, as it makes the commodity less appealing to international buyers.
The expectation that China will introduce a new dockage allowance rule come September 1, which could curb the amount of canola the country purchases from Canada, added to the declines.
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…
Spillover weakness from the Chicago Board of Trade soybean market was also a feature.
About 17,818 canola contracts traded on Tuesday, which compares with Monday when 16,536 contracts changed hands. Spreading accounted for about 1,882 of the contracts traded.
Barley was untraded and unchanged, while durum and milling wheat prices were revised after the close.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade moved to both sides of unchanged during Tuesday’s session, but settled with small losses of one to four cents per bushel.
Soybeans climbed to their highest levels in nearly a month in early activity, but ran into resistance and backed away.
The US soybean crop was rated 72 per cent good to excellent in the latest weekly USDA report, which was unchanged from the previous week.
Solid export demand on the other side helped limit the losses, with Chinese purchases running well ahead of where they were last year at this time.
SOYOIL futures were up on Tuesday, continuing to find support from Monday’s tighter-than-expected supply number from the National Oilseed Processors Association. Gains in other vegetable oil markets were also supportive.
SOYMEAL futures were down on Tuesday.
CORN futures in Chicago were narrowly mixed on Tuesday, finishing within a penny of unchanged.
The US corn crop was rated 74 per cent good-to-excellent as of this past Sunday, which was historically high for this time of year.
While the good US crop prospects weighed on values, any bearish sentiment was countered by expectations for solid export demand.
WHEAT futures in Chicago were up by one to two cents per bushel on Tuesday, after trading to both sides of unchanged.
The US spring wheat harvest was 48 per cent complete as of this past Sunday, although rain showers were causing delays in some areas.
Persistent production concerns out of Europe were somewhat supportive, but Russia and other former Soviet countries are reporting large wheat crops.
– Russia’s wheat exports are forecast at 28.0 million tonnes by the Russian Grain Union. If realized, that would be up by 3.4 million tonnes from the previous year.
– Egypt is tightening its rules on wheat imports, with only 0.05 per cent tolerance for ergot now allowed.
