By Jade Markus and Dave Sims, Commodity News Service Canada
Winnipeg, March 7 (CNS Canada) – ICE Futures Canada canola closed sharply lower on Tuesday.
The market was feeling pressure from the US soy complex, which declined with investor-positioning ahead of the release of a monthly production report from the United States Department of Agriculture.
Fund-liquidation was also a feature, which caused selling to build on itself.
About 19,382 canola contracts traded on Tuesday, which compares with Monday when 25,128 contracts changed hands.
Spreading accounted for about 6,946 of the contracts traded.
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Milling wheat, durum and barley futures were all untraded and unchanged.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade finished eight to 12 cents per bushel weaker on Tuesday, on ideas that Thursday’s USDA report could bump up Brazilian soy prospects. One analyst pegged the crop at 109.1 million tonnes, which is up from the USDA’s previous estimate of 108 million tonnes.
Brazil’s second largest soybean area has already completed 56 per cent of its harvest, which was bearish.
Light showers are expected in central and northern Brazil over the next few days, which should be favourable for the crop.
SOYOIL futures declined on Tuesday.
SOYMEAL futures recorded modest losses to end the day.
CORN futures in Chicago declined two to three cents per bushel on Tuesday as traders positioned themselves ahead of Thursday’s USDA report.
Speculators are also engaged in some selling as South American harvest pressured mounts.
Both Wisconsin and Tennessee have tested positive for bird flu, which was bearish for the feed market.
WHEAT futures in Chicago dipped one to two cents per bushel on chart-based trading.
There are reports that Russia’s winter wheat crop has weathered the winter season extremely well. A lack of freezing and sufficient ground moisture was cited as some of the main reasons why.
A wind storm in the US plains on Monday may have damaged some hard red winter wheat, which was supportive.
