By Dave Sims, Commodity News Service Canada
Winnipeg, August 3 (CNS Canada) – Canola contracts on the ICE Futures platform suffered modest losses to end the week, as traders prepared for next week’s USDA supply and demand report. There are ideas soybean stocks could rise in the report, which would be bearish for canola and other oilseeds.
Some traders were also squaring positions ahead of the long weekend. The ICE canola market will be closed Monday for a civic holiday in Canada.
Trade tensions between the United States and China threw some caution into futures and crush margins remain weak.
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However, dry conditions in Western Canada look to continue through the month of August, which will stress canola crops in parts of Alberta and Saskatchewan.
Gains in U.S. soyoil were supportive for the market.
Volumes were extremely low.
About 4,996 canola contracts traded, which compares with Thursday when 5,452 contracts changed hands. Spreading accounted for 1,018 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade ended slightly higher Friday in sideways trade.
There is speculation China may have to start buying soybeans from the United States, despite the tariffs, to satisfy its enormous demand.
China also announced it was preparing to slap tariffs on US$60 billion worth of U.S. imports.
The corn market ended higher Friday in speculative buying.
The corn harvest in Argentina is 84 per cent complete, according to the Buenos Aires Exchange. Most forecasts peg crop production at 30 to 31 million tonnes.
According to the USDA, U.S. exporters sold 130,000 tonnes of corn to Vietnam for 2018-19.
Chicago wheat futures ended slighty lower in corrective trading.
Weather conditions in the U.S. Plains haven’t been as hot as previously projected, which was bearish.
There is still uncertainty over whether Ukraine will start to limit wheat exports, but Russia has announced it will keep shipping out wheat.
