The stronger loonie, weaker soybean prices and good harvest weather pressured Winnipeg canola futures lower Wednesday.
Canola futures rose early in the day on stronger vegetable oil prices, including palm oil and on higher crude oil prices, sparked by tightening U.S. oil inventories.
But the market backed down as soybeans retreated on a change in the weather forecast toward drier conditions next week. The forecast for the Canadian Prairies also improved with yesterday’s outlook for moisture Nov. 9 now changed to sun.
Also, analytical firm Informa forecast this year’s U.S. soybean crop at a record 3.333 billion bushels with an average yield of 43.5 bu. per acre. That is higher than the U.S. Department of Agriculture’s current forecast of 3.250 billion bu. USDA will release a new forecast Nov. 10.
November canola, in delivery mode, fell $5.40 to close at $398.40 Cdn per tonne with only 85 contracts trading.
January closed at $396.40, down $7.40 cents on a volume of 7,407 contracts.
March fell $7.80 cents to settle at $402.30 on a volume of 417 contracts.
At noon, the Bank of Canada said the Canadian dollar was worth 93.92 cents US, up from 93.42 Tuesday. The U.S. dollar was worth $1.0647 Cdn.
Winnipeg barley futures dropped $2 to close at $166 per tonne. January was down $2 cents to $155.
