By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, Dec 9 – THE ICE Futures Canada canola market finished lower Wednesday, tracking losses in US soyoil.
Malaysian palm oil, European rapeseed futures and crude oil were all lower which undermined the market.
The soybean crop in Brazil is improving with recent rain which was also bearish.
In today’s monthly supply-and-demand report, the USDA left its forecast for US domestic supplies of soybeans essentially unchanged, which provided little direction for the market.
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However, some early farmer selling helped give some support to canola along with gains in US wheat.
Canola crush margins are firm which was supportive and demand is reasonably strong.
Spreading was a main feature of today’s activity as a number of investors rolled out of the January contract into the March one.
Milling wheat, barley and durum were untraded.
Around 19,684 canola contracts were traded on Wednesday, which compares with Tuesday when around 38,320 contracts changed hands. Spreading accounted for 14,692 of the contracts traded.
Milling wheat, barley and durum were untraded.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade closed five and a half to six and a quarter cents per bushel lower on Tuesday as traders took positions ahead of a report from the United States Department of Agriculture (USDA) due out on Wednesday.
Many market watchers expect domestic stocks to be revised upward in the report, which is bearish.
Improved growing conditions in Brazil and a favourable outlook further added to the bearish tone.
SOYOIL prices settled stronger on Tuesday, adjusting against soymeal.
SOYMEAL closed weaker on Tuesday.
CORN futures closed unchanged to one and a half cents per bushel higher on Tuesday, as strong ethanol demand from China propped up prices.
South American weather has not been favourable for corn production, according to reports, which was also bullish.
However the expectation that the USDA report will show ample domestic supplies put a lid on gains.
WHEAT closed half a cent higher to two and a quarter cents per bushel weaker on Tuesday, also positioning ahead of Wednesday’s supply and demand report from the USDA.
Many traders expect the outlook for wheat to be bearish, especially as global supplies of the commodity are already high.
Favourable conditions for US winter wheat production further pressured prices.
– Market estimates peg the USDA’s supply and demand report wheat projection at 918 million bushels.
– India’s wheat seeding is a week behind the five-year average, according to reports out of the country.