By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, October 28 – THE ICE Futures Canada canola market finished lower on choppy trading Wednesday, following losses in US soybeans and tracking movement in the Canadian dollar.
The loonie was up nearly half a cent relative to its US counterpart which made canola less attractive to foreign buyers.
Traders expect the next survey from Statistics Canada to show larger canola supplies than initially reported.
Rain in Brazil is helping alleviate concerns over excess dryness within soybean crops while European rapeseed futures were also lower.
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However, US soyoil and Malaysian palm oil were both higher which helped limit the losses.
Crushers remain steady buyers which was bullish for values.
Milling wheat, barley and durum were all untraded.
A total of 24,527 canola contracts were traded on Wednesday, which compares with Tuesday when 32,676 contracts changed hands. Spreading accounted for 15,646 of the contracts traded.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade were down by four to 10 cents per bushel on Wednesday, as improving Brazilian weather forecasts and a lack of fresh demand
news weighed on prices.
Some of the drier areas of Brazil are now expected to see some much needed rain over the next ten days, which will help the recently planted soybean crops there.
The US soybean harvest is also in its final stages, and the increased availability of newly harvested supplies contributed to the softer tone, according to participants.
SOYOIL settled with small gains on Wednesday, despite the losses in soybeans, as strength in Malaysian palm oil and other world vegetable oil markets provided support. Adjustments to the
soyoil/soymeal spread also favoured the oil side of the equation on Wednesday.
SOYMEAL futures were down on Wednesday, following soybeans.
CORN futures in Chicago were down three to four cents per bushel on Wednesday, as poor export demand and the big US crop weighed on prices.
News that Chinese buyers were not in the market for any more US DDGS for the time being added to the softer tone in corn, as traders in the Asian country are concerned over a possible
The US soybean harvest is over three-quarters complete, and yield reports continue to beat earlier expectations.
WHEAT futures in Chicago settled one to three cents per bushel lower on Wednesday, as forecasts calling for some much needed rain in the dry US Southern Plains weighed on prices.
A continued lack of significant export demand for US wheat remained a bearish influence as well, according to traders.
However, production uncertainty in other parts of the world
– including Australia and the Black Sea region did help underpin
the futures.
Chart support also held to the downside.
