By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, Aug. 30 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Tuesday, falling to some of their lowest levels of the past month as losses in Chicago Board of Trade soybeans and seasonal harvest pressure weighed on values.
Expectations that Canada’s canola crop will likely end up above the 17.0 million tonnes forecast by Statistics Canada added to the softer tone. Ongoing concerns over reduced Chinese demand remained in the background as well, as the country is set to impose stricter dockage rules on September 1.
Read Also
North American Grain/Oilseed Review: Canola rises, down day for grains
Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange were higher on Friday despite weakness in most comparable…
However, Canadian Prime Minister Justin Trudeau is on a trade mission to China this week, and the chance that an agreement could be reached kept some caution in the futures.
Canola is also still looking very attractively priced compared to other oilseeds, with or without sales to China, and end user demand remained solid underneath the market, said traders.
Weakness in the Canadian dollar, which was down by about a third of a cent relative to its US counterpart, was another supportive influence.
About 16,612 canola contracts were traded on Tuesday, which compares with Monday when 15,698 contracts changed hands.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed nine to 17 cents per bushel weaker on Tuesday, pressured by advances in the US dollar.
A steadily gaining greenback could cut into foreign interest in US oilseeds, which is bearish.
Favourable crop conditions further pressured the market.
Soybean conditions improved by one per cent on the week, putting 73 per cent of the crop in good to excellent condition.
Forecasts for mostly favourable weather in the US Midwest into harvest added to the declines.
SOYOIL prices closed weaker on Tuesday.
SOYMEAL closed lower on Tuesday.
CORN futures were three to eight cents per bushel lower on Tuesday, also pressured by strength in the US dollar.
Market watchers expect corn exports could fall short of this marketing year’s forecasts from the United States Department of Agriculture, which is bearish.
Corn crop conditions held steady on the week, with 75 per cent in good to excellent condition, which added to the declines.
WHEAT lost five to six cents per bushel on Tuesday, pressured by advances in the US dollar and a bearish supply situation.
Despite production cuts from Europe, global supplies of the grain remain high.
A broad-based commodity sell-off was also a feature.
– Japan has tendered for 144,385 metric tonnes of wheat, market watchers say.
– The European Union expects its soft white wheat exports to reach 25 million tonnes this year.
