By Dave Sims, Commodity News Service Canada
Winnipeg, October 10 – The ICE Futures Canada canola market finished weaker on Tuesday, tracking declines in vegetable oil and feeling the effects of currency issues.
The Canadian dollar was higher against its US counterpart, which made canola less attractive on the international market.
Canola is considered expensive right now, compared to other oilseeds.
The outlook for the soybean crop in South America will soon start to dominate investors’ interest, according to a trader in Winnipeg.
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However, delays in the canola harvest were supportive for the market.
“There is still some concern,” said the trader. “If they don’t get a chunk of that canola done it may get more expensive.”
Global demand for oilseeds remains strong.
Around 28,988 canola contracts were traded on Tuesday, which compares with Friday when around 19,478 contracts changed hands. The Canadian market was closed on Monday due to Thanksgiving. Spreading accounted for 22,224 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
Soybeans were mostly weaker on Tuesday, with the majority of contracts up to a penny lower.
Many traders are expecting to see a slight increase in yield numbers in Thursday’s USDA supply and demand report.
Harvest pressure weighed down values and trade is tightly range-bound.
Corn was roughly half-a-cent weaker in choppy trading on Tuesday.
The market was mixing around in technical trade and once again searching for direction.
The December contract was consolidating a bit. Many traders are keeping to the sidelines though until Thursday’s report comes out. There is speculation the report
could find yields as high as 170 bushels an acre.
Wheat on the Chicago Board of Trade was one cent weaker on Tuesday.
There seems to be a lack of demand for US shipments right now.
Russia is planning to sell of 1.5 million tonnes of wheat from its state reserve, which was bearish.
