By Dave Sims, Commodity News Service Canada
Winnipeg, August 23 (CNS Canada) – A persistent slump in the value of soybeans weighed down ICE Futures canola contracts Thursday, sending them below the psychologically-important C$500 per tonne mark.
As well, rains this week in the American Midwest are expected to be favourable for late soybean development, which was bearish for the market.
Losses in European rapeseed futures and Malaysian palm oil added to the downside.
Technical selling was a feature of the morning’s activity.
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However, weakness in the Canadian dollar was bullish for prices.
Uncertainty about the state of canola yields kept traders from making aggressive moves one way or the other.
About 12,827 canola contracts traded, which compares with Wednesday when 11,460 contracts changed hands. Spreading accounted for 5,726 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade dropped, as more reports of strong soybean podcounts continued to come out of the ProFarmer crop tour in the United States Midwest.
Concerns over trade trouble between China and the U.S. intensified after the two sides slapped more sanctions on one another.
Fund selling was a feature of the morning’s activity.
The corn market also fell as strong yields were reported in Illinois by crop-tour participants. They pegged yields at 192.6 bushels an acre, which compares to last year’s mark of just 180.7.
Futures prices for ethanol have been significantly lower this week, which dragged on prices.
China dumped over two million tonnes of corn onto the market, from a state-run auction this week.
Chicago wheat futures ended weaker as the spring wheat harvest in the U.S. continued to clip along at a steady pace.
Weekly export sales also failed to meet expectations, which was bearish.
Strength in the U.S. dollar weighed down prices.
