By Dave Sims and Erin DeBooy, Commodity News Service Canada
Winnipeg, August 25 – THE ICE Futures Canada canola market dropped on Thursday, tracking losses in vegetable oil. Chicago Board of Trade soyoil was sharply lower on the day while losses were also recorded in Malaysian palm oil and European rapeseed futures.
CBOT soybeans and soymeal were also weaker which added to the downside.
China is scheduled to tighten the amount of foreign materials it allows in imports of Canadian canola on September 1.
However, crude oil was higher which helped curb the losses.
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Wet weather in Western Canada appears to have dampened expectations for the size of this year’s crop, according to a farmer and trader in Winnipeg.
“We pulled into a field of canola last night that we thought for sure was going to be between 60 to 70 (bushels an acre) and it’s running in the 40’s,” he said.
Demand for oilseeds is still reasonably firm.
Around 16,346 canola contracts were traded on Thursday,
which compares with Wednesday when around 16,256 contracts changed hands. Spreading accounted for about 8,682 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade fell for the third consecutive session on Thursday, dropping two to three US cents per bushel.
The annual Pro Farmer Midwest crop tour reported bumper prospects across the US Midwest, with above-average soybean pod counts in some areas, weighing on prices.
Favourable weather forecasts continue throughout the Farm Belt, which is bearish.
SOYOIL weakened on Thursday.
SOYMEAL weakened on Thursday.
CORN futures fell around four US cents per bushel on Thursday, with the September contract settling just above daily lows at US$3.2350 per bushel.
The International Grains Council raised its forecasts for world corn production to record highs, weighing on prices.
The Pro Farmer crop tour projected Illinois and Iowa’s corn yields to be sharply higher than last year.
However, the large yields are estimated below the USDA’s record-large forecast, and projections from Minnesota’s corn crops are looking weaker than last year, limiting losses.
WHEAT closed lower on Thursday, dropping around 2 US cents per bushel and slipping closer to the US$4.00 mark.
Favourable weather in the Farm Belt continues to boost wheat crops, and is expected to continue through the last weeks of the growing season, weighing on the market.
US Pro Farmer crop tour scouts continue to estimate record yields for wheat, and the International Grains Council has also raised its forecasts for world wheat production to record highs.
-Winter cereal harvest is complete in Manitoba, and producers continue to move ahead with spring wheat harvest operations despite rainfall and moisture challenges, according to the weekly Manitoba crop report.
– Wheat harvest in Southern England is nearing completion, and although yields are slightly below average, the quality is good, showing high protein contents, according to reports.
