By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, June 15 – THE ICE Futures Canada canola market finished weaker in choppy trading Wednesday, weighed down by losses in the US soy complex.
A slump in Malaysian palm oil helped point the way lower along with declines in crude oil and European rapeseed futures.
Favourable weather conditions across Western Canada undermined the market, according to a Winnipeg-based analyst.
“Oilseed crops across North America are looking quite good,” he noted.
However, the Canadian dollar was weaker relative to its US counterpart which made canola more attractive to buyers.
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Commercial demand has been steady which was supportive.
Around 25,451 canola contracts were traded on Wednesday, which compares with Tuesday when around 27,249 contracts changed hands. Spreading accounted for about 12,452 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were down by two to 13 cents per bushel on Wednesday, with chart-based profit-taking the feature as values retreated from nearby highs.
Good US crop weather and ideas that planted area may end up above earlier projections added to the softer tone. Improving nearby Midwestern weather forecasts were also bearish.
The declines came despite solid demand from the domestic crush sector, with the monthly US soybean crush for May, reported by the National Oilseed Processors Association, of 152.8 million bushels the largest ever for that month.
SOYOIL futures were down on Wednesday, as the solid US crush pace also meant an increase in soyoil supplies.
SOYMEAL futures were down on Wednesday.
CORN futures in Chicago were down by five to eight cents per bushel on Wednesday, as profit-taking came forward after values moved to fresh contract highs in early activity.
While forecasts calling for hot temperatures were somewhat supportive, the Midwest is also expected to see some beneficial rain over the next few weeks.
WHEAT futures in Chicago were down by six to eight cents per bushel on Wednesday, as the advancing US winter wheat harvest continued to weigh on prices.
Early yield reports have generally beat expectations in the southern Plains.
However, persistent production issues elsewhere in the world, including the Black Sea region, did lend some underlying support.
– Japan has tendered to purchase 112,870 tonnes of food-grade wheat from the US, Canada, and Australia. The tender closes on Thursday.
– Australia’s 2016/17 wheat production is now forecast at 25.4 million tonnes, according to the latest estimates from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). That would be the largest crop in four years and compares with the previous estimate of 24.5 million tonnes.
