By Terryn Shiells and Jade Markus, Commodity News Service Canada
Winnipeg, August 21 – The ICE Futures Canada canola market was up slightly on Friday. A sharply lower Canadian dollar provided support – as it made canola more attractive to crushers and exporters.
Statistics Canada released their first survey-based production estimates Friday morning, pegging the 2015/16 canola crop at 13.3 million tonnes, which was slightly supportive, as it’s down from last year’s 15.6 million tonne crop, analysts said.
But, traders believe StatsCan’s estimate is too low – and the actual crop size will likely be closer to 14.0 million tonnes.
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The gains in canola were also limited by a sharp move lower in both Chicago soybean and soyoil futures on Friday.
Milling wheat, durum and barley futures were untraded and unchanged.
About 23,610 contracts traded on Friday, which compares with Thursday when 18,413 contracts changed hands.
Milling wheat, barley and durum futures were untraded and unchanged.
SOYBEAN futures at the Chicago Board of Trade closed 14 to 18 cents per bushel lower Friday as favourable weather in the US pressured prices.
Rains in the US Midwest over the past week have aided in soybean pod development, which is bearish.
A positive weather outlook for the rest of August, and reports that this year’s crops look better than other years added to the bearish tone.
SOYOIL prices settled weaker on Friday following soybean futures.
SOYMEAL closed weaker Friday, following neighbouring markets.
CORN futures closed two to five cents per bushel weaker Friday as nearby markets pressured prices.
Market watchers also attribute losses to crude oil prices being at a six-year low. When oil prices slip it’s less appealing to process corn into ethanol.
Additionally, analysts say some of the weakness is caused by concerns about the global economy, particularly China.
WHEAT futures in Chicago closed six to seven cents per bushel lower Friday amid a number of bearish factors.
A weekly export report released on Thursday from the USDA was also bearish. Net wheat sales for the week ended August 13 totalled 314,400 metric tonnes for both 2014-15 and 2015-16.
Analysts had pegged the figure at 400,000 to 675,000 metric tonnes.
Wheat prices were also pressured by persistent concerns about high global supplies and low demand for US product.
– Import sales from China from January to July dropped 37 per cent from the previous year to 1.7 million tonnes of wheat.
– Analysts say a South Korean company bought 23,900 tonnes of US wheat in a tender that closed on Thursday.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
