By Dave Sims, Commodity News Service Canada
Winnipeg, August 27 (CNS Canada) – The ICE Futures canola market ended lower to start the week, weighed down by a bearish mix of currency issues and weakness in soybeans.
Uncertainty over canola yields in Western Canada suppressed investor appetite.
Crush margins remain low and cooler weather conditions have set in across the Prairies.
The soybean crop in the United States looks to be very large this year as yields were pegged last week at 53 bushels an acre.
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However, gains in soyoil helped support prices and volumes were much higher than last week.
About 11,195 canola contracts traded, which compares with Friday when just 1,419 contracts changed hands. Spreading accounted for 3,604 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade ended weaker on Monday, as the results of last week’s ProFarmer crop tour continued to weigh down prices. Participants on the tour pegged soybean yields at 53 bushels per acre, which exceeded most trade guesses entering last week.
Recent weakness in other agricultural markets also weighed on futures along with a lack of trade progress between China and Washington.
On the international front, China appears to need less livestock feed due to the recent outbreak of African swine fever.
The corn market ended slightly lower in narrow, range-bound trade.
There are ideas farmers in the American Midwest may start to sell corn to make room for soybeans.
Futures did get a boost Monday by news of a trade deal between Mexico and the United States.
Chicago wheat futures ended lower in fund selling.
Good yields have emerged out of the spring wheat harvest, which was bearish.
Demand for U.S. supplies remains lukewarm despite ideas it would grow due to drought problems in Europe and the Black Sea region.
