By Dave Sims, Commodity News Service Canada
Winnipeg, August 28 (CNS Canada) – The ICE Futures canola market ended weaker on Tuesday, as strength in the Canadian dollar and a slumping soybean market pointed the way downward.
Harvest is getting underway in parts of Western Canada, although rain is keeping some combines off the field.
Canola remains expensive compared to other oilseeds and canola crush margins are low.
Technical selling was a feature of the morning’s activity.
However, demand for canola remains reasonably steady.
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Some traders were taking positions ahead of Friday’s crop production estimates from Statistics Canada.
About 13,283 canola contracts traded, which compares with Monday when just 11,195 contracts changed hands. Spreading accounted for 2,990 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade continued to drift lower Tuesday, pressured by the lingering effects of last week’s bearish production forecast ProFarmer.
There are ideas the government aid package for soybean farmers in the United States will just encourage them to plant more acres. The subsidy starts with US$1.65 a bushel on the first 50 per cent of production for 2018.
According to the USDA, over 90 per cent of the U.S. soybean crop was setting pods, which adds to ideas this year’s crop could be record large.
The corn market ended lower on Tuesday as rain is expected to fall this week across much of the U.S. Corn Belt, which was bearish.
The market was taking some strength from the trade deal struck between the U.S. and Mexico.
According to the USDA, 68 per cent of the U.S. corn crop was rated good to excellent, which was the same as last week.
Chicago wheat futures ended close to unchanged in choppy, technical trading.
According to the USDA, the U.S. spring wheat harvest is 77 per cent complete, which is up significantly from last week’s 60 per cent rating.
Prices for Russian wheat are on the decline due to weakness in the ruble, which is making sales harder for U.S. exporters.
