By Jade Markus and Erin DeBooy, Commodity News Service Canada
Winnipeg, September 7 (CNS Canada) – ICE Futures Canada canola ended mixed on Wednesday.
Front contracts felt pressure from Statistics Canada stocks data, which beat out analyst-expectations at 2.016 million metric tonnes.
StatsCan also raised year-ago canola production numbers, which is bearish.
Overnight losses in the Malaysian palm oil market added to the declines.
However, deferred contracts were propped up by gains in Chicago Board of Trade soybeans and losses in the Canadian dollar.
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CBOT soybeans advanced as traders process the effects of rain in key US growing regions during crop development and harvest.
The loonie lost ground against its US counterpart on Wednesday, which is bullish for canola, as it makes the commodity more affordable to international buyers.
About 20,677 canola contracts traded on Wednesday, which compares with Tuesday when 17,139 contracts changed hands. Spreading accounted for about 12,040 of the contracts traded.
Durum and barley were untraded and unchanged, while milling wheat was revised lower after the close.
SOYBEAN futures at the Chicago Board of Trade jumped more than 15 US cents per bushel on Wednesday, driven higher by foreign demand.
Private exporters sold 484,000 tonnes of soybeans to China and unknown destinations for delivery in the 2016-17 crop year, according to the USDA, supporting prices.
Traders are predicting the 2015-16 crop inventories will also dwindle due to the quick export pace, outweighing worries of a record harvest year.
SOYOIL strengthened on Wednesday.
SOYMEAL strengthened on Wednesday.
CORN futures strengthened on Wednesday, rising more than four US cents per bushel.
The weaker US dollar supported corn prices, which was also boosted by the rally in soybeans.
WHEAT futures strengthened on Wednesday, rising three to four US cents per bushel to settle at US$4.0275 for the December contract.
Traders were optimistic cheap US wheat could be sold to North African destinations, like Algeria and Morocco, supporting the market.
Reports of low quality wheat in Europe, combined with the lower US dollar, have strengthened demand ideas overall.
– Total stocks of wheat in Canada fell 26.8 per cent from July 31, 2015 to
Drops in both commercial stocks and stocks held on farms contributed to the
overall decline.
– Wheat yields in the UK continue to disappoint producers, according to
reports. As harvest wraps up, yields continue to be lower than expected and
poor weather in Scotland and northern England has been hindering progress.
