By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, November 9 – THE ICE Futures Canada canola market finished mostly lower on Wednesday, due to steep losses in US soy in the aftermath of the US election.
According to the USDA’s supply and demand estimates, soybean production in the US is expected to increase to 4.36 billion bushels with yields of 52.5 bushels an acre. That is well up from what most analysts had been expecting going into the report and subsequently pushed canola lower.
Some uncertainty still lingers on global markets as US President-elect Donald Trump has previously stated he wants to adjust trade with China.
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Losses in vegetable oil weighed on canola.
The recent spell of warm weather has allowed farmers to get more harvesting done, which was bearish.
However, the Canadian dollar lost roughly three-quarters of a cent compared to its US counterpart, which made canola more attractive to out-of-country buyers.
Global demand for oilseeds remains robust.
Milling wheat, barley and durum were untraded.
About 20,175 canola contracts traded on Wednesday, which compares with Tuesday when 24,340 contracts changed hands. Spreading accounted for about 9,818 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed seven to 20 cents per bushel weaker on Wednesday, pressured by data from the United States Department of Agriculture.
US soybean production is now expected to reach 4.36 billion bushels, while yield is projected at 52.5 bushels per acre.
The results of the US presidential election further pressured soybeans, market watchers say.
Ideas about how president-elect Donald Trump will affect trade are not yet clear, which added to the downside in soybeans.
SOYOIL prices declined on Wednesday.
SOYMEAL closed weaker on Wednesday.
CORN futures were 11 to 13 cents per bushel lower on Wednesday, also pressured by USDA data.
The USDA expects higher production of the grain, a record 15.23 billion bushels, with yields pegged at 175.3 bushels per acre.
Ideas that Brazil’s crop may be bigger than previously thought added to the downside.
WHEAT declined about eight cents per bushel with spillover losses from the soybean and corn markets on Wednesday.
USDA projections that ending stocks will be higher than previously thought added to the downside.
However, ideas that US wheat is competitive internationally limited losses.
