By Dave Sims, Commodity News Service Canada
Winnipeg, August 16 – THE ICE Futures Canada canola market recorded mild losses on Wednesday, weighed down by action in the Canadian currency.
The Canadian dollar was roughly half a cent stronger, relative to its US counterpart, which made canola less enticing to international customers.
Losses in Malaysian palm oil were bearish while fund selling pressured prices.
Recent rains across portions of the Canadian Prairies and US Midwest undermined the market.
However, advances in US soyoil and soybeans limited the downside and slow farmer selling was supportive.
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A few of the early-harvested canola fields in southern Manitoba have produced yields approaching 50 bushels an acre, according to a trader in Winnipeg. Yields further west are not expected to be nearly as high though.
Soybeans finished mostly one cent higher on Wednesday, with the exception of the front-month September contract, which ended unchanged.
Prices corrected slightly higher in the wake of recent heavy losses.
Stocks of soyoil in the US were lower than expected, according to a recent report.
Wet weather in the US Midwest and expectations for a large US soybean harvested limited any type of rally.
Corn ended one to two cents lower in technical trade.
Wednesday started off with light buying interest, but the bearish factors facing the corn crop were too much to overcome.
Improvements in the crop condition rating in the US continued to overhang the market along with expectations for a massive crop.
Strength in the US dollar was bearish for corn exporters as well.
Wheat finished five to 10 cents lower in the US as favourable rains alleviated some of the heat stress facing fields in the US Plains.
This year’s Russian wheat crop is expected to be very large, which undermined values.
Fund selling was also a factor.
