By Dave Sims, Commodity News Service Canada
Winnipeg, January 10 (CNS Canada) – Canola contracts on the ICE Futures Canada platform suffered losses on Wednesday, as weakness in the U.S. soy complex pointed the way lower.
Steady farmer selling weighed on values, according to a trader in Winnipeg.
There are expectations the USDA will raise its yield and production numbers for U.S. soybeans in Friday’s supply and demand report.
Canada appears to be moving into a consolidation pattern ahead of Friday’s report.
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However, strength in Malaysian palm oil futures helped limit the damage.
Thin volumes may have exaggerated today’s losses.
Around 10,500 canola contracts were traded on Wednesday, which compares with Tuesday when around 18,891 contracts changed hands. Spreading accounted for 4,308 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade ended eight to nine cents weaker on forecasts calling for rain to fall in Argentina and Brazil.
Strength in the United States dollar and weakness in soymeal weighed down the market.
There are reports that U.S. soybean stocks could be raised to around 480 million bushels in Friday’s USDA supply and demand report; the previous forecast had them at 445 million.
Corn futures chopped around before ending within a cent of unchanged on Wednesday.
Japan is reportedly willing to accept more U.S. ethanol for use in its bio-fuel program, which was supportive.
A private consulting firm pegged Brazil’s corn crop at 94.5 million tonnes, which is about the same as the latest USDA forecast.
The Chicago wheat market chalked up gains of two to three cents on Wednesday, as traders took positions ahead of Friday’s USDA report.
There are expectations that tomorrow’s U.S. wheat export numbers will be extremely strong. Some analysts have them pegged at 450,000 tonnes, which compares to the previous week’s total of 131,000 tonnes.
Some rain is expected to fall in the U.S. Midwest this week, which could help improve soil conditions.
