By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, September 28 – THE ICE Futures Canada canola market dipped in narrow trading on Wednesday, following significant losses in the vegetable oil market.
The harvest continues to advance across much of Western Canada, which also put pressure on prices.
The South American soybean crop looks like it should be fairly massive.
The Canadian dollar was higher compared to its US counterpart, which made canola more enticing to domestic crushers and foreign buyers.
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However, gains in Chicago soybeans were supportive while the crush continues to run at a flat-out pace.
Wet weather in Western Canada, particularly Alberta, is delaying the harvest.
Around 18,930 canola contracts were traded on Wednesday, which compares with Tuesday when around 12,168 contracts changed hands. Spreading accounted for about 15,182 of the contracts traded.
Milling wheat, barley and durum were untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were down by four to seven cents per bushel on Wednesday, as the advancing US soybean harvest weighed on prices.
While wet weather has caused delays recently, the forecasts are looking drier over the next week. Early harvest reports are also generally beating expectations, causing investors to upwardly revise their production estimates.
SOYOIL futures were down on Wednesday, as sharp losses in Malaysian palm oil weighed on vegetable oil markets across the board.
SOYMEAL futures were narrowly mixed on Wednesday, as positioning against soyoil provided some underlying support.
CORN futures in Chicago were down by two to three cents per bushel on Wednesday, as seasonal harvest pressure weighed on values.
News that China is imposing duties on US distillers dried grains (DDGs) contributed to the softer tone, as China is a major buyer of the ethanol by-product.
Corn held within a rather narrow range from a chart standpoint, with nearby support holding to the downside.
WHEAT futures in Chicago were narrowly mixed on Wednesday, as spillover from the declines in corn and soybeans was countered by supportive technical signals and production concerns elsewhere in the world.
While world wheat supplies remain large, quality issues are becoming a wider problem, according to reports.
Wheat remains stuck in a sideways trading range, awaiting some fresh fundamental news to drive it one way or the other.
– Argentina exported 7.35 million tonnes of wheat during January to August period, which was about double the level posted during the same timeframe the previous year, according to reports out of the country.
– Russia will harvest 116 million tonnes of grain this year, and may see total production rise to 150 million tonnes by 2026, according to the country’s agriculture minister.
