By Dave Sims, Commodity News Service Canada
Winnipeg, October 11, – The ICE Futures Canada canola market finished weaker on Wednesday, as traders positioned themselves ahead of tomorrow’s USDA supply and demand report. There are ideas tomorrow’s report will point towards slightly larger US soybean yields, which would be bearish for the entire oilseeds sector.
Losses in US soybeans weighed on the market.
Wet weather has hampered harvest operations in the Western Prairies but good weather has begun to settle in and combines are rolling again in certain locations.
Read Also
North American grain/oilseed review: Canola drops to end week
Glacier FarmMedia — The ICE Futures canola market was weaker on Friday, taking back Thursday’s gains as losses in Chicago…
Traders have begun to shift their focus to the crop in South America.
However, slow farmer selling helped prop up values.
“I think the farmer is doing a good job of keeping product off the market,” said a trader in Winnipeg, adding line companies were being flooded with supplies whenever they lifted the basis.
Gains in Malaysian palm oil also underpinned the market.
Around 26,559 canola contracts were traded on Wednesday, which compares with Tuesday when around 28,988 contracts changed hands. Spreading accounted for 16,940 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market was narrowly mixed in technical trading.
Yesterday’s crop condition report raised the quality of US soybeans. That has sparked ideas tomorrow’s supply and demand report will be bearish for the market.
Weakness in the US dollar was supportive for the market.
Corn was weaker on ideas that Thursday’s USDA report will point towards larger US supplies.
CONAB estimates that the first Brazilian corn crop could be extremely small, just 12 to 12.7 million acres. The European Union has cut its import duty on corn.
The corn crop in Iowa is just eight percent harvested.
Wheat finished slightly lower as demand for US wheat is extremely slow.
Rain in the US Plains has delayed planting but also improved soil conditions for the winter wheat.
The latest report showed planting is 48 percent complete, well behind the 5-year pace of 59 percent.
