By Dave Sims, Commodity News Service Canada
Winnipeg, August 30 – THE ICE Futures Canada canola market ended lower on Wednesday, as traders positioned themselves before tomorrow’s Statistics Canada production report.
The market was actually higher for much of the morning but traders took profits minutes before the close, which weighed down the market.
As well, harvest pressure and better-than-expected results from some early combined areas across Western Canada were bearish for values.
There are expectations the US soybean harvest will be massive, which undermined prices.
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However, the Canadian currency was around a full cent lower, relative to the US dollar, which made canola more enticing to buyers on the international market.
Farmer selling is currently slow, noted an analyst in Winnipeg, but should pick up in September.
Around 16,457 canola contracts were traded on Wednesday, which compares with Tuesday when around 20,087 contracts changed hands. Spreading accounted for 5,862 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.
