A stronger loonie, weak soybean prices and favourable harvest weather worked against Winnipeg canola futures prices Tuesday.
A Reuters News Service story from China said that for the rest of the current crop year, Canadian and Australian canola that tests positive for blackleg could be shipped to ports away from China’s major rapeseed growing areas.
Reuters said China’s General Administration of Quality Supervision, Inspection and Quarantine reported on its website that affected canola can be processed at some designated crushers near the designated ports at the supervision of the quarantine authority.
The move is a small concession because most crushers are located in rapeseed areas, far from the ports that will be open to imports, Reuters said.
The U.S. Department of Agriculture’s November supply and demand report put the U.S. soybean crop at 3.319 billion bushels, up from the October estimate of 3.25 billion and the average trade estimate of 3.262 billion.
November soybeans in Chicago dropped 2.75 cents to $9.615 US per bu.
USDA also raised its forecast of Brazilian soy production to 63 million tonnes from 62 million last month, and boosted Argentine production to 53 million from 52.5 million.
USDA’s American corn production forecast was a little below trade expectations.
January canola closed at $383.20 Cdn per tonne, down $2 on a volume of 6,331 contracts.
March fell $2.20 to settle at $389 on a volume of 359 contracts.
At noon, the Bank of Canada said the Canadian dollar was worth 95.08 cents US, up from 94.64 Friday. The U.S. dollar was worth $1.0518 Cdn.
In light trade, Winnipeg November barley, under the old contract, was steady, closing at $175 per tonne. January, under the new contract, was steady at $155.90.
The Winnipeg market will be closed Wednesday for Remembrance Day.
