By Dave Sims, Commodity News Service Canada
Winnipeg, August 9 (CNS Canada) – Canola contracts on the ICE Futures platform recorded modest losses Thursday, as traders booked profits.
Tomorrow, the United States Department of Agriculture is scheduled to release its monthly supply and demand estimates which many traders are expecting will be a bearish one for oilseeds in general.
Ideas canola was overbought weighed on the market, setting the stage for corrective action before the close.
Crush margins remain under pressure and some larger players are waiting for new crop canola to come on line before they buy.
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Canola futures on the Intercontinental Exchange were still reeling on Friday following the release of Statistics Canada’s bearish canola production…
However, temperatures in excess of 30 C are expected in parts of Saskatchewan and Alberta today, creating more stress on canola plants.
Slow farmer selling helped prop up prices. About 11,285 canola contracts traded, which compares with Wednesday when 18,740 contracts changed hands. Spreading accounted for 1,902 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade corrected lower Thursday ahead of tomorrow’s supply and demand estimates from the United States Department of Agriculture.
China released more details on the tariffs it will be slapping down on imports of U.S. goods, which threw some uncertainty into the market.
Dry weather is expected over the next week for the U.S. Plains, which was mildly supportive for values.
From a technical point of view, soybeans were running into resistance at the 50-day moving average.
A survey by the Dow Jones put this year’s corn crop at 14.42 billion bushels with a yield of 176.3 bushels an acre.
Weekly export sales pegged old crop exports at 555,000 tonnes, which was somewhere in the middle of trader’s expectations.
Hot weather is making its presence felt in the U.S. Corn Belt, which was stressing the crop.
Chicago wheat futures suffered losses in profit-taking.
Most analysts expect the U.S. wheat carryout to drop 24 million bushels in tomorrow’s report.
Weakness in the Russian ruble was helping make Russian exports more competitive.
