By Dave Sims, Commodity News Service Canada
Winnipeg, July 3 (CNS Canada) – Canola contracts on the ICE Futures Canada platform ended weaker on Tuesday, as losses in the Chicago Board of Trade soy complex pointed the way downward. Canola was catching up to the weaker soy futures as Canadian markets were closed yesterday for a national holiday.
Friday’s acreage report continued to weigh on the market. Statistics Canada pegged canola plantings in Canada at 22.7 million acres, well above the previous estimate of 21.4 million.
Canola is looking quite expensive relative to other oilseeds.
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Losses in Malaysian palm oil also dragged on prices.
However, a few regions of Western Canada, primarily in Alberta and Saskatchewan, remain too dry.
“Some areas have missed the showers we’ve had,” said a trader in Winnipeg.
About 11,294 canola contracts traded, which compares with Friday when 10,793 contracts changed hands. Spreading accounted for 3,302 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The market finished lower in technical trading Tuesday.
The United States Department of Agriculture lowered its condition rating for the U.S. soybean crop to 71 per cent good to excellent, which was supportive.
Traders began taking positions ahead of Independence Day when markets will be closed in the U.S.
Chinese tariffs on U.S. soybeans are scheduled to kick in on Friday.
Corn futures received a boost from the weekly U.S. crop report,
Buying from overseas was also a factor as many countries thought the crop was oversold.
Dryness in the Black Sea region was good news for U.S. exporters.
Chicago wheat futures corrected higher in the wake of Monday’s selloff.
The International Grains Council lowered its estimate for world wheat production to 737 million tonnes, which was supportive.
According to the USDA, the winter wheat harvest is about half over.
