By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Aug. 24 (CNS Canada) – ICE Futures Canada canola contracts settled lower on Thursday, after posting gains for most of the session as the early buying interest gave way to profit-taking in the final minutes.
Mounting harvest pressure in Western Canada added to the softer tone. However, uncertainty over the size of that crop remained somewhat supportive as traders adjust positions ahead of next week’s Statistics Canada production report.
The first official survey-based production estimates of the year will be released August 31. After growing 18.4 million tonnes in 2016, average trade guesses are forecasting a similar crop for 2017. However, individual market opinions vary widely.
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About 19,658 canola contracts traded on Thursday, which compares with Wednesday when 19,403 contracts changed hands. Spreading accounted for 8,310 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
Soybean futures were up by five to eight cents per bushel on Thursday, finding some strength on the back of solid export demand.
Weekly US soybean export sales reported by the USDA came in at more than two million tonnes, which far surpassed market expectations.
Soybeans also continued to find strength from news that the US would be imposing countervailing duties on biodiesel imports from Indonesia and Argentina, which should create more domestic demand from the renewable fuels sector for US soyoil.
On the other side, good US crop weather kept a lid on the market.
Corn prices were steady to up one cent, lacking any clear direction.
Weekly US corn export sales came in at the low end of market expectations, at about half-a-million tonnes. Relatively favourable US crop weather also weighed on prices.
A move by Brazil to impose tariffs on US ethanol put additional pressure on the corn market.
However, corn found support to the downside, with oversold price sentiment helping the market consolidate right above its nearby lows.
Wheat was up two to 11 cents, with Minneapolis spring wheat leading to the upside.
Speculators were noted buyers, covering short positions amid ideas wheat was looking oversold.
Persistent concerns over the state of the US and Canadian spring wheat crops also provided support.
However, world wheat supplies remain large overall, tempering the gains.
