By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, July 20 – THE ICE Futures Canada canola market finished relatively unchanged in extremely choppy trading on Wednesday. The market bounced above and below unchanged before the two front-month contracts ultimately settled even.
Weakness in Chicago Board of Trade soybeans weighed down some of the more deferred contracts.
Weather conditions across North America are generally good for the development of oilseeds, which was bearish for the market.
However, Malaysian palm oil, European rapeseed futures and crude oil were stronger, which helped underpin prices.
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The Canadian dollar was weaker compared to its US counterpart, which made canola a little more attractive to out-of-country customers.
Crushers in Canada are extremely active which was supportive, according to a trader in Winnipeg.
About 18,412 canola contracts traded on Wednesday, which compares with Tuesday when 16,855 contracts changed hands.
Spreading accounted for about 3,074 of the contracts traded.
Milling wheat, barley and durum were untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed two to nineteen cents per bushel weaker on Wednesday, pressured by investor profit-taking.
Easing weather concerns furthered losses.
Weather forecasts in key US growing regions during August are more benign than previously anticipated, which is bearish.
Mostly favourable crop conditions, reflected in data from the United States Department of Agriculture, further pressured prices.
However, the expectation for strong demand underpinned the market and limited losses.
SOYOIL prices closed stronger on Wednesday, tracking advances in Malaysian palm oil.
SOYMEAL closed lower on Wednesday.
CORN futures were two to four cents per bushel weaker on Wednesday, as hot weather in key growing regions is expected to be short-lived.
Parts of the US Corn Belt will see high temperatures short-term, which could stress crops, but not for as long as previously thought.
However, Argentinian grain truckers are in an open-ended strike, market watchers say.
The strike could slow exports from the country, which limited losses.
WHEAT closed five to seven cents per bushel lower on Wednesday, feeling the effects of strength in the US dollar and harvest pressure.
A stronger greenback makes US commodities less affordable to international buyers.
The US winter wheat harvest is advancing ahead of its average pace, which added to the bearish tone.
– France’s share of the wheat export market has declined to 11 per cent, market watchers say, as the country’s output has been hampered by rain.
– Russia’s share of the wheat export market has increased to 16 per cent, analysts say.
