Winnipeg canola futures closed a little lower on Wednesday, still influenced by expectations of a good Canadian canola crop and more U.S. soybeans than expected.
Harvest selling by farmers also weighed on the market, as did the Canadian dollar, which rose.
The U.S. Department of Agriculture released a report this morning that said U.S. soy stocks on Sept. 1 totaled 138 million bushels. The number, which represents the amount of soybeans carried into the new marketing year, was more than the average of analysts’ estimates for 112 million bu.
The report also increased the outlook for the U.S. wheat crop and the carry-in stocks.
The corn carry-in number was smaller than analysts’ expectations.
We’ll get Statistics Canada’s take on the size of Canadian crops Friday.
Later in the day, all oilseeds rose after the U.S. government reported smaller than expected gasoline stocks, implying increased demand. That pushed crude oil up six percent. Because vegetable oil can be used to make diesel, crude oil prices have an influence on oilseed prices. Nearby soybeans in Chicago ended the day a little higher.
The Winnipeg ICE canola November contract ended the day at $379.60 per tonne, down 10 cents from $379.70 per tonne Tuesday.
The January contract was at $386 per tonne, down 20 cents from $386.20 on Tuesday.
At noon, $1 US was worth $1.0722 Cdn compared to $1.0871 on Tuesday at the same time.
One dollar Cdn was worth 93.3 cents US compared to 92 cents the day before.
