By Dave Sims and Erin DeBooy, Commodity News Service Canada
Winnipeg, August 22 – THE ICE Futures Canada canola market finished higher on Monday, as traders positioned themselves ahead of the release of Tuesday’s canola crop estimates report, compiled by Statistics Canada.
The Canadian dollar was lower compared to its US counterpart, which made canola more attractive to out-of-country buyers.
Advances in Chicago Board of Trade soybeans were supportive for values.
“We still haven’t seen any harvest pressure yet; just some small harvesting going on right now in Canada’s southerly regions,” said a trader in Winnipeg.
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However, CBOT soyoil, crude oil and Malaysian palm oil futures were all weaker which dragged on the market.
China is expected to lower the amount of dockage it accepts on imports of Canadian canola on September 1, which was bearish for the market.
Around 16,529 canola contracts were traded on Monday, which compares with Friday when around 15,631 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 moved higher on Monday, rising eight to 11 US cents, rebounding from two days of declines.
Private exporters booked sales of 120,000 tonnes of soybeans to unknown destinations during the 2016/17 marketing year, according to the USDA, supporting prices.
US farmers are still expected to reap a record soybean harvest for the second year in a row, however the brisk pace shippers are booking sales to foreign buyers is boosting prices.
SOYOIL prices closed lower on Monday, following overnight losses in Malaysian palm oil.
SOYMEAL strengthened on Monday.
CORN futures fell about one cent on Monday, with the September contract closing at US$3.3325 per bushel.
Favourable weather across the Farm Belt weighed on prices, benefiting crops in the final weeks of the growing season.
The European Union’s crop monitoring agency cut its corn yield estimates to 7.23 tonnes per hectare from 7.42 tonnes per hectare after dry weather damaged corn fields in Romania and Bulgaria, limiting losses.
WHEAT closed lower on Monday, dropping nine to 11 cents per bushel.
The Farm Belt has been receiving favourable weather that is expected to continue through the last weeks of growing season, weighing on prices.
Traders also eagerly await the results from the Pro Farmer crop tour, which will give a better sense of the scale of US crops.
The USDA had forecast record wheat crops for 2016/17.
-The industry is bracing for potentially large Statistics Canada crop estimates, set for release on Tuesday. Pre-report estimates for wheat range from 28.5 million to 32 million tonnes, which compares to 27.594 tonnes in 2015.
– Romania harvested seven per cent more wheat on the year, according to reports, with 8.14 million tonnes of wheat now in the bin for 2016.
