By Dave Sims, Commodity News Service Canada
Winnipeg, August 22 (CNS Canada) – Canola contracts on the ICE Futures Canada platform chalked up losses in Wednesday, following a downturn in the Chicago Board of Trade soy complex.
Slight gains in the value of the Canadian dollar, relative to its American counterpart, were bearish for futures.
As well, more farmers are selling canola as harvest progresses.
Canola looks pricey relative to soybeans, which also weighed on values.
However, demand for supplies remains steady and the front-month contract took some technical support at the C$500 per tonne mark.
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About 11,460 canola contracts traded, which compares with Tuesday when 10,821 contracts changed hands. Spreading accounted for 3,156 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade suffered more losses Wednesday, as the ProFarmer crop tour in the Midwest continues to find good-yielding soybean fields.
Trade talks between China and Washington began today, which also threw some caution into the market.
Reports out of Brazil suggest farmers there will plant 36.3 million hectares of soybeans in 2018/19, which would be up 3.2 per cent from last year.
The corn market dropped Wednesday as participants on the crop tour pegged corn yields in Indiana at 182.3 bushels an acre. If that number holds up it would be a dramatic improvement on last year’s yield, which was just 171.2 bushels an acre.
Weekly ethanol production in the United States was roughly 1,000 barrels per day higher than last week, which was supportive.
Fund selling was a feature of the morning activity.
Chicago wheat futures chopped lower in technical trade.
According to the German Farmer’s Association, this year’s wheat crop in the country is 18.6 million tonnes, which is down 23 per cent from last year.
Agritel has pegged Russian wheat exports at 31.5 million tonnes in 2018/19, down from last year’s figure of 42 million.
Cheap supplies of wheat from the Black Sea region continue to stream into the market, which was bearish.
