By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, September 17 – The ICE Futures Canada canola market finished mostly weaker Thursday, feeling spillover losses from the US soy complex.
The Canadian dollar ended higher relative to its US counterpart which made canola less attractive to domestic crushers and foreign buyers. The loonie was initially weaker against the US dollar but reversed direction once the US Federal Reserve announced it was not hiking the interest rate.
Statistics Canada released a new report that pegged this year’s canola production at 14.4 million tonnes. The report was compiled using satellite data, farmer surveys and environmental information. The market seemed to mostly shrug off the report however, as one analyst said many participants had already concluded that StatsCan’s previous estimate of a 13.3 million tonne crop was too low.
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Malaysian palm oil and European rapeseed futures were also lower which dragged down contracts.
However, wet weather continues to delay harvest in certain areas of Canadian farmland which was supportive.
A total of 15,442 canola contracts traded on Thursday, which compares with Wednesday when around 16,389 contracts changed hands. Spreading accounted for 9,296 of the contracts traded.
Milling wheat, barley and durum were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed one cent per bushel higher to three cents per bushel lower Thursday as a lack of demand for the commodity pressured prices, analysts say.
Data from the USDA put soybean exports within analyst expectations, but traders say they are still concerned about demand going forward.
Those concerns are heightened as weather in Brazil has been favourable for production, which could boost the country’s domestic stocks.
Additionally, South American farmers are expected to increase acreage next year, which added to the bearish tone.
SOYOIL prices settled lower on Thursday following neighbouring markets.
SOYMEAL closed weaker on Thursday following soybean futures.
CORN futures closed five to six cents per bushel lower Thursday as favourable harvest weather continued.
Reports of good yields emerging from the Corn Belt also pressured prices.
Like soybeans, analysts are concerned about demand for corn.
WHEAT futures in Chicago closed six to eight cents per bushel weaker Thursday as US farmers seeded winter
wheat.
Wheat has been consistently plagued by high global supplies and a lack of demand.
– Japan has tendered 138,855 tonnes of US, Canadian, and Australian wheat.
– France’s wheat production is at a record high this year, analysts say.
