By Dave Sims, Commodity News Service Canada
Winnipeg, August 2 (CNS Canada) – Canola contracts on the ICE Futures platform finished close to unchanged in choppy, technical trading on Thursday.
Losses in U.S. soybeans and soyoil were countered by concerns about dry conditions in Western Canada. The hot temperatures are expected to continue through much of August.
“We’re going to be dealing with a restricted amount of rain and warmer than normal temps (in Western Canada),” said Drew Lerner of World Weather Inc. in Kansas City.
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Slow farmer selling helped prop up prices.
Crush margins remain under pressure though and there are ideas the trade situation between the U.S. and China is becoming worse than expected.
Volumes were minimal.
About 5,452 canola contracts traded, which compares with Tuesday when 11,445 contracts changed hands. Spreading accounted for 2,606 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade ended weaker Thursday in follow-through selling. Recent comments by U.S. President Donald Trump that tariffs on Chinese imports could increase continued to weigh on values.
The latest forecast by INTL FCStone pegged the U.S. soybean yield at 51.5 bushels an acre, which was higher than what the USDA had been saying.
Weekly export sales in the U.S. were 637,000 tonnes, which was on the low side of expectations.
The corn market inched higher, taking strength from gains in the wheat market.
There are ideas that demand for U.S. livestock feed is set to fall due to the trade trouble between China and the U.S.
Brazil may be set to plant more corn in anticipation of continued strong demand from China.
Chicago wheat futures ended higher on talk that Ukraine was thinking of limiting wheat shipments.
The market continues to soar due to all the weather problems in major wheat growing countries. There’s word Australia’s crop may be even drier than expected.
Weekly U.S. export sales were around 384,000 tonnes, which was on the high side of expectations.
