By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, March 30 – THE ICE Futures Canada canola market ended weaker on Wednesday, as losses in the US soy complex pointed the way lower.
The Canadian dollar was roughly half a cent higher compared to its US counterpart. That made canola less desirable to domestic crushers and international buyers.
Spreads were weak and many traders were positioning themselves ahead of tomorrow’s USDA acreage and quarterly stocks reports.
However, commercial buying continued to support the market.
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China’s decision to delay changes to the amount of dockage it accepts on imports of Canadian canola was supportive.
Around 21,172 canola contracts were traded on Wednesday, which compares with Tuesday when around 34,272 contracts changed hands. Spreading accounted for about 9,526 of the contracts traded.
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 closed three to seven cents per bushel lower on Wednesday, as traders expect upcoming data from the United States Department of Agriculture (USDA) to reflect an increase in seeded area.
The USDA’s prospective plantings report is due out on Thursday, March 31.
Increased farmer selling added to the declines on Wednesday.
However, a weaker US dollar limited losses, as it makes the country’s commodities more appealing to foreign buyers.
SOYOIL prices settled weaker on Wednesday.
CORN futures closed five to six cents per bushel lower on Wednesday, as investors expect the prospective plantings report to show an increased amount of corn seeded this upcoming growing season.
The expectation that USDA data—a grain stocks report also due out on Thursday—will show ample domestic stocks added to the bearish tone.
WHEAT closed ten to twelve cents per bushel weaker on Wednesday, as traders evened positions ahead of Thursday’s report from the USDA.
Wheat led the declines, despite trade estimates of a lower seeded area this growing season, as global inventories remain high.
Extended dryness in the US had propped up prices, but with rain anticipated for Iowa, wheat handed back those gains.
– Dry weather in key parts has put 53 per cent of the winter wheat crop in drought condition, market watchers say.
– Argentina is expected to increase wheat production this growing season.
