By Terryn Shiells and Marney Blunt, Commodity News Service Canada
WINNIPEG, Aug 29 – ICE Futures Canada canola contracts ended lower on Friday, as traders took some profits on recent gains and ahead of the long weekend, analysts said. Canadian and US markets will be closed for Labour Day on Monday, September 1.
The market’s weakness was also linked to spillover pressure from the declines seen in the Chicago soybeans, soyoil and Malaysian palm oil futures.
Continued expectations of a record large 2014/15 US soybean crop were also weighing on canola.
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However, concerns about cool, wet weather causing problems for western Canadian canola crops this week helped to limit the declines, as did the weaker Canadian dollar.
About 20,981 contracts traded on Friday, which compares with Thursday when 15,689 contracts changed hands.
Milling wheat, durum and barley futures were untraded, though wheat prices were adjusted slightly following Friday’s close.
SOYBEAN futures in Chicago were lower on Friday, as favourable weather conditions were pressuring the oilseed prices, analysts say.
Beneficial weather conditions in the forecast are good for the developing crop but some areas may be seeing excessive amounts of precipitation.
Traders say there are limited reports of fresh news ahead of the upcoming record harvest. Processor margins and interest remains strong with very strong basis offers at the processors.
There are reports of sudden death syndrome this week, and traders will continue to watch for further reports as the rainfall this week could worsen the disease.
SOYOIL futures in Chicago closed lower on Friday.
SOYMEAL futures closed higher on Friday, keeping the spread with soybean oil.
CORN futures in Chicago fell Friday, as favourable weather across the U.S. Midwest promises to water a crop that is already in excellent condition right before harvest, brokers say.
The forecast holds widespread rainfall and warm temperatures across the U.S. Corn Belt this weekend and into next week. The moisture is expected to aid late season growth in fields, traders say.
Corn prices usually weaken as harvest nears unless there are signs of trouble in the crop, analysts say.
Earlier this month, the U.S. Department of Agriculture has predicted that corn production will exceed 14 billion bushels, surpassing last year’s record harvest.
WHEAT futures in Chicago were lower on Friday after jumping the day prior due to signs of escalating conflict in the Black Sea region, traders say.
On Thursday, Ukraine had accused Russia of invading the country, which further declined hopes of a diplomatic solution, and causing concern that renewed violence could cause disruptions in wheat shipments. Both Ukraine and Russia are major grain exporters on a global scale.
There are still quality concerns lingering with the rainfall in the U.S. diminishing the quality of the crop and reducing the availability of the milling wheat. There are reports of the spring wheat harvest progressing in the U.S.
– Harvest time rains that have depressed European wheat quality are beginning to take their toll on the UK crop too. However, the crop still looks as though it will have a record yield.
– Grain growers in Australia’s Victorian Wheat Belt are in desperate need of rainfall, reports say.
– Ukraine is expected to harvest more than 24 million tonnes of wheat this year, reports say.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
