By Dave Sims, Commodity News Service Canada
Winnipeg, September 11 – The ICE Futures Canada canola market finished lower to start the week, dragged down by seasonal harvest pressure and action in the Canadian currency.
The Canadian dollar was around a quarter of a cent stronger, compared to its US counterpart, which made canola less attractive to international buyers.
Losses in US soybeans added to the downside.
Traders were squaring positions ahead of tomorrow’s USDA supply and demand report.
However, demand for global oilseeds remains strong and the canola market took strength from higher prices for vegetable oil.
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There are some concerns about crop quality in southern Saskatchewan and Alberta due to dryness.
Around 22,850 canola contracts were traded on Monday, which compares with Friday when around 13,831 contracts changed hands.
Spreading accounted for 12,260 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
Soybeans finished one to two cents weaker on Monday.
The market was seesawing up and down in choppy trade as traders positioned themselves before tomorrow’s USDA supply and demand report. Average trade guesses for soybean yields were somewhere in the neighborhood of 48.5 to 49 bushels an acre.
There was concern about potential damage to the soybean crop in Georgia due to Hurricane Irma.
Corn ended around one cent higher as traders squared positions before tomorrow’s report.
Corn farmers in Georgia took off most of the crop last week, rather than leave it at the mercy of Hurricane Irma. The bad news is there’s still a chance grain storage facilities could flood in the state.
Trade guesses for the corn yield in tomorrow’s report are roughly in the 168 BPA to 169 range.
Wheat was three to four cents weaker to start the week.
The wheat market is facing pressure from the Black Sea region as large supplies of cheap wheat are making their way onto the market.
Estimates for the size of the Russian wheat crop keep rising.
On the other side, weather problems in Argentina and Australia are lending strength to the market.
