By Jade Markus and Erin DeBooy, Commodity News Service Canada
Winnipeg, July 28 – ICE Futures Canada canola ended lower with US soybeans on Thursday, following a day of choppy trading.
Volatility in domestic currency markets caused back-and-forth movement throughout the day, but spillover weakness from US oilseeds brought canola down by the close.
The Canadian dollar moved to both sides of unchanged against its US counterpart throughout the day. The loonie felt pressure from weaker crude oil prices, and the greenback softened with the announcement that the US Federal Reserve will hold interest rates steady for now.
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Chicago Board of Trade soybeans lost ground with net sales reductions reflected in weekly export data from the United States Department of Agriculture.
Spillover weakness from Malaysian palm oil added to the declines.
About 18,006 canola contracts traded on Thursday, which compares with Wednesday when 15,727 contracts changed hands. Spreading accounted for about 1,540 of the contracts traded.
Milling wheat and durum futures were untraded and unchanged. Barley moved lower.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade fell seven to 11 cents per bushel on Thursday, squeaking back above the daily low of US$9.98 to settle at US$10.0350 per bushel for the August contract.
Threatening weather has dissipated, increasing expectations of record yields.
Soybeans also lost ground with net sales reductions reflected in weekly export data from the USDA. Traders focused on a soybean delivery cancellation from China, limiting rallies.
SOYOIL prices closed slightly lower on Thursday, with the August contract settling at 29.49 US cents per pound.
SOYMEAL closed weaker on Thursday, falling more than US$3 to US$341.5 per hundredweight.
CORN futures lost two to four cents per bushel on Thursday as expectations for a record crop rise.
The September contract hit daily lows of US$3.29 before settling slightly higher at US$3.3125 per bushel.
The Farm Belt is in for another week of hot weather, however sufficient rainfall has provided enough moisture for crops to handle the heat.
So far, US crops are in great condition and are expected to yield around 168 to 170 bushels per acre.
WHEAT closed four to five cents per bushel lower on Thursday at US$4.1025 for the September contract after hitting daily highs of US$4.200 per bushel.
Scouts on the Wheat Quality Council’s crop tour throughout North Dakota say spring wheat prospects are near to or above average.
Favourable weather is also forecast for the Farm Belt, weighing on prices.
– Harvest of the US spring wheat crop has begun, according to US AgNet. South Dakota has harvested nearly 20 per cent of the crop, compared to 14 per cent on average. North Dakota and Minnesota began harvesting over the weekend but have been limited due to rain.
– French farmers are seeing the smallest wheat yields in 30 years, according to reports. Producers are seeing yields of about 5.5 tonnes per hectare, the lowest since 1986 and 24 per cent below the five year average.
