By Jade Markus and Dave Sims, Commodity News Service Canada
ICE Futures Canada canola ended lower on Thursday, pressured by gains in the Canadian dollar ahead of a key decision from Britain.
The commodity-linked Canadian dollar gained with crude oil prices, and reduced likelihood that Britain will leave the European Union.
A ‘remain’ vote in an ongoing referendum, dubbed ‘Brexit,’ is supportive for the Canadian dollar, as the loonie is risk-sensitive, analysts say.
As a result, canola moved lower, since a stronger Canadian dollar makes the commodity less appealing to international buyers.
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Spec-selling was another bearish feature on Thursday.
Trader-positioning ahead of next week’s Statistics Canada acreage estimates also added pressure.
Spillover support from advances in Malaysian palm oil and Chicago Board of Trade soy oil limited losses.
About 29,516 canola contracts traded on Thursday, which
compares with Wednesday when 31,288 contracts changed hands. Spreading accounted for about 12,302 of the contracts traded.
Milling wheat, durum and barley futures were all untraded and unchanged.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures weakened 13 to 15 cents per bushel Thursday as favourable rains in the US Midwest helped replenish dry sections of farmland.
Chart-based selling was a feature of the day’s activity as well.
Weakness in the US dollar helped limit the losses.
There may also be some anxiety in the trading air due to next week’s release of the USDA acreage and stocks report, an analyst said.
Soyoil finished 20 points higher, taking strength from gains in crude oil.
SOYMEAL futures dropped tracking soybeans.
Corn futures ended 5 cents lower Thursday as speculators continued to liquidate positions.
Favourable weather conditions in the US corn belt also dragged on values.
However, a US official in Brazil pegs the country’s corn crop at 75 million tonnes. That is less than the USDA’s official estimate of 77.5 million tonnes, which was supportive.
Wheat futures on the Chicago Board of Trade finished 4 to 7 cents per bushel lower as investors rid themselves of bearish bets on grain, according to a report.
The September contract traded within a clean 10 US cent range, bouncing back and forth between US$4.65 to US$4.75 (per bushel) as the bears and bulls fought for control.
However, rain in the prime-growing region of southwest Kansas has slowed the wheat harvest, which was bullish for prices.
– Japan reportedly purchased 120,000 tonnes of wheat from the US, Canada and Australia.
– In the first quarter of this year, Indonesia has imported nearly 3 million tonnes of wheat. Half of that went directly to the country’s flour producer’s association, according to a report.
