By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, July 22 – THE ICE Futures Canada canola market finished lower on Friday as large funds went on a selling spree before the weekend.
Losses in the US soy complex and vegetable oil contributed to the downside.
The Canadian canola crop continues to show strong development while soybeans are also doing well in the US, said a Winnipeg-based trader.
“The general feeling is the crop will be big on both sides of the border, which is pressuring values,” he said.
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Extremely hot weather in the US Midwest is problematic for some crops, however it is not expected to stick around for as long as some weather-casters had predicted.
On the other side, the Canadian dollar was weaker
relative to its US counterpart, which made canola more attractive
to foreign buyers.
Excess moisture in parts of the Prairies was bullish as crop-watchers say most canola doesn’t need a lot more rain.
About 19,402 canola contracts traded on Friday, which compares with Thursday when 21,377 contracts changed hands.
Spreading accounted for about 1,064 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 nine to 26 cents per bushel weaker on Friday, pushed lower by fund-liquidation.
Easing weather concerns further pressured the market.
Despite hot temperatures in key US growing regions, scattered showers are expected to relieve crop-stress.
Better-than-expected weather forecasts for the US Midwest in August were also bearish.
Strong demand for US soybeans underpinned the market and limited losses.
SOYOIL prices closed weaker on Friday, following losses in Malaysian palm oil.
CORN futures were mostly unchanged to two cents per bushel stronger on Friday, propped up by advances in the nearby wheat market.
However, generally favourable weather in the US Midwest limited gains.
Losses in the crude oil market further capped advances.
WHEAT closed seven to 11 cents per bushel higher on Friday, propped up by anticipated crop-loss in France.
Wetness in France has curbed production in the country, which is bullish.
However, Russia is expected to export an increased amount of wheat this year, which limited gains.
The ongoing US winter wheat harvest also put a lid on advances.
– Argentine has planted 83 per cent of its wheat crop, market watchers say.
– Ukraine’s wheat exports are expected to be 13 million metric tonnes lower this year, analysts say.
