By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, September 15 – The ICE Futures Canada canola market finished mixed in narrow trading on Tuesday; with traders taking profits shortly before the close.
Losses in US soyoil, Malaysian palm oil and European rapeseed futures weighed on prices.
Contracts finished off their highs with the more deferred values posting slight gains while the most-frequently traded November contract ended slightly lower.
Seasonal harvest pressure was a bearish presence and crop yields have been better than many expected.
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“Some above-average yields could limit the gains as the crop sounds like it’s getting bigger,” a trader said.
However, rainy weather across parts of Western Canada has delayed harvest efforts, which was bullish for values.
Commercial buying was also supportive for prices, the trader added.
“We bounced off the C$455 (per tonne) level so I think we’ll go back down and re-test that once harvest is full-bore,” the trader remarked.
A total of 18,564 canola contracts traded on Tuesday, which compares with Monday when around 25,194 contracts changed hands.
Milling wheat, barley and durum were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed four to six cents per bushel higher Tuesday as crop conditions declined.
A report by the USDA, released on Monday, reduced the amount of crops in good or excellent condition by two percentage points to 61 per cent.
Market watchers say oilseed demand is strong globally, which added to the bullish tone.
SOYOIL prices settled lower on Tuesday.
SOYMEAL closed higher on Tuesday, following neighbouring oilseed markets.
CORN futures closed two to three cents per bushel lower Tuesday, as the USDA crop progress report held conditions steady.
The report said 68 per cent of corn crops were in good to excellent condition, which was bearish, especially as traders had anticipated a reduction.
WHEAT futures in Chicago closed six to seven cents per bushel weaker Tuesday as analysts say buying stopped as winter wheat seeding started.
Prices were also pressured by the expectation that rain will be beneficial for the seeded crops.
High global supplies were also bearish for the commodity.
– Australia has revised its export estimate to 17.5 million tonnes of wheat, up from 16.5 million tonnes.
– Freezing temperatures hit the Brazilian wheat growing regions, and producers are still assessing the damage.
