By Dave Sims, Commodity News Service Canada
Winnipeg, August 31 – The ICE Futures Canada canola market finished higher on Thursday, following gains in the US soy complex.
The Canadian dollar was roughly a quarter of a cent weaker, compared to its US counterpart, which made canola more attractive to out-of-country buyers.
This morning Statistics Canada released its production report. In it, the agency raised last year’s production total for the canola crop from 18.4 million tonnes to 19.6 million. It pegged this year’s production number at 18.2 million tonnes, which was in line with trade guesses.
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By Glen Hallick Glacier Farm Media | MarketsFarm – Intercontinental Exchange canola futures continued lower late Tuesday morning, in what…
Strong global demand for oilseeds propped up values.
However, declines in Malaysian palm oil were bearish for canola.
Expectations of a large US soybean crop undermined prices.
Around 20,541 canola contracts were traded on Thursday, which compares with Wednesday when around 16,457 contracts changed hands. Spreading accounted for 8,246 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
Soybeans fell two to seven cents lower on Wednesday due to favourable weather conditions in the Midwest and follow-through selling.
The development of the US soybean crop is slightly ahead of average, which was bearish.
On the flip side, strong demand from China limited the losses.
Corn finished three to four cents lower in technical trading.
The market ticked lower but already there are some ideas it is getting oversold so a bounce could be coming.
A full moon is scheduled on September 6 and some participants are worried about a chance of frost in some regions.
That being said most of the crop is maturing nicely due to the recent warm temperatures.
Wheat ended mixed in technical trading.
There are ideas the wheat market is oversold.
The USDA estimates the US spring wheat harvest is 76 percent complete. That is ahead of the five-year average of 66 percent.
