By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, September 13 – THE ICE Futures Canada canola market drifted slightly lower on Tuesday, pressured by weakness in vegetable oil, crude oil and the lingering effects of yesterday’s USDA production report.
The USDA predicted that US soybean production and ending stocks would both rise in 2016/17, which weighed down the oilseed market.
Crush margins were also lower, which was bearish.
However, the Canadian dollar was weaker compared to its US counterpart, which made canola more attractive to out-of-country buyers.
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Slow farmer selling was also a feature of the day, according to a trader.
Cold temperatures were recorded across Western Canada last night with some areas receiving a touch of frost, according to reports. The cool, wet weather has delayed some harvesting and put a weather premium into the canola market.
Around 14,455 canola contracts were traded on Tuesday, which compares with Monday when around 14,736 contracts changed hands.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed 11 to 20 cents per bushel weaker on Tuesday, pressured by favourable crop conditions.
Upwardly revised yield projections from the United States Department of Agriculture added to the declines.
Advances in the US dollar, which makes the country’s commodities less appealing to international buyers, were also bearish.
SOYOIL prices closed weaker on Tuesday, following Malaysian palm oil.
SOYMEAL closed weaker on Tuesday.
CORN futures were eight to ten cents per bushel weaker on Tuesday, pressured by a bearish supply and demand situation.
A stronger US dollar added to the downside.
However, wet weather in the US is causing the country’s corn harvest to run behind the average pace, reports say, which limited losses.
WHEAT closed about eight cents per bushel lower on Tuesday, feeling spillover pressure from the nearby corn and soybean markets.
High global supplies and gains in the US dollar added to the declines.
– US winter wheat planting is expected to be one per cent ahead of the five-year average at 26 per cent.
– The US spring wheat average is pegged at 94 per cent finished.
