By Jade Markus and Dave Sims, Commodity News Service Canada
Winnipeg, July 14 (CNS Canada) – ICE Futures Canada canola ended weaker on Thursday, feeling spillover pressure from sharp declines in the Chicago Board of Trade soybean market.
US soybeans lost ground with weaker export sales, and ideas that scattered showers will limit some of the negative effects of warm, dry weather in the US Midwest.
Gains in the Canadian dollar against its US counterpart further pressured the canola market.
The loonie advanced to a one-week-high against the greenback on Thursday, which was bearish for canola, as it makes the commodity less appealing to international buyers.
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Investors may be looking to take profits soon, analysts say, which was another bearish feature.
About 16,654 canola contracts traded on Thursday, which compares with Wednesday when 21,979 contracts changed hands. Spreading accounted for about 3,084 of the contracts traded.
Milling wheat and durum were untraded while 25 barley contracts changed hands.
Settlement prices are in Canadian dollars per metric tonne.
Corn futures finished four to five cents per bushel lower Thursday as traders took profits.
Scattered showers and a few thunderstorms are forecast to hit parts of the US Midwest in the next few days which should help bump up the water table, according to a report.
On the other side, hot weather is still expected to stress the corn crop in the coming weeks.
SOYBEAN futures finished sharply lower, losing 27 to 43 cents per bushel, as traders engaged in profit-taking.
The market may also have corrected itself on ideas the futures were overbought.
Wet weather in the US Midwest over the next days was bearish for values.
Some weather watchers have also speculated that expected hot, dry weather in two weeks’ time may not last as long as initially predicted.
Soyoil also finished six points lower.
SOYMEAL futures dropped sharply tracking soybeans and on ideas some end-users may also start buying cheap supplies of feed wheat.
Wheat futures on the Chicago Board of Trade trended two to five cents per bushel lower tracking losses in corn and soybeans.
Some traders took profits.
Ukraine’s wheat harvest is proceeding smoothly and yields are roughly 11 per cent higher than last year, which was bearish.
– Egypt has confirmed it will allow up to 0.05% ergot fungus in wheat imports starting on Tuesday.
– Japan plans to import 300 tonnes of feed-quality wheat in its next tender.
