By Dave Sims and Erin DeBooy, Commodity News Service Canada
Winnipeg, July 6 – THE ICE Futures Canada canola market sunk lower as large funds continued to liquidate positions in the North American oilseed market.
Canola posted losses in sympathy with US soybeans and the vegetable oil market.
Technical selling was also a feature of the day’s activity, according to a Winnipeg-based analyst.
Weather conditions across Western Canada are mostly favourable for canola crops which was bearish, he added.
The Canadian dollar was stronger relative to its US counterpart which made canola less enticing to international buyers.
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However, the International Grains Council has pegged canola/rapeseed stocks at a 13-year low which was bullish for values, according to a report.
There are ideas canola is underpriced compared to other
oilseeds.
Crude oil was also higher which was supportive for prices.
Around 18,182 canola contracts were traded on Wednesday, which compares with Tuesday when around 17,696 contracts changed hands.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade fell one to 11 cents per bushel on Wednesday with good weather and excelling crops pressuring prices.
The USDA’s weekly crop condition report on Tuesday showed strong ratings for soybeans, contributing to its weakness.
Fund traders continue to liquidate long positions, sending prices below key support levels.
SOYOIL prices closed weaker on Wednesday as investors pull out of bullish bets, partially stoked by new concerns about post-Brexit economic growth.
SOYMEAL closed weaker on Wednesday.
CORN futures closed weaker on Wednesday, falling six to 10 cents per bushel and hitting a nearly two-year low as wet weather graces the Midwest.
Favourable temperatures and rain in drier areas are expected in the coming weeks.
Speculative investors are bailing out of bullish bets on corn as concerns over a summer drought fade and yield prospects improve.
WHEAT fell four to six cents per bushel on Wednesday, weakened due to favourable US harvest progress and good crop conditions.
The market was bearish with the crop-friendly weather as Tuesday’s USDA crop report showed wheat in overall positive condition.
