By Dave Sims and Terryn Shiells, Commodity News Service
Winnipeg, Oct. 8 – The ICE Futures Canada canola market settled lower on Wednesday – with traders taking profits on the heels of Monday’s sharp advances and in sympathy with the US soy complex.
The market will likely begin to feel pressure from now until the release of Friday’s USDA monthly crop production and supply/demand report, said a trader, adding investors will not want to get caught in an unfavorable position.
The harvest continues to advance across Western Canada with one analyst convinced the bulk of it should be completed by the latter stages of next week.
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The Canadian dollar was weaker against its American counterpart which helped limit the losses.
About 26,000 canola contracts were traded on Wednesday, which compares with Tuesday when 29,000 contracts changed hands.
Milling wheat, durum, and barley were all untraded.
Settlement prices are in Canadian dollars per metric ton.
US Grain and Oilseed Review
By Commodity News Service Canada
Winnipeg, Oct. 8 – SOYBEAN futures at the Chicago Board of Trade ended three to six cents US per bushel lower on Wednesday, as ongoing harvest pressure in the US Midwest weighed on prices, analysts said.
Forecasts are calling for drier weather in many areas later this week, which will keep activities moving along at a good pace.
Ongoing expectations of record large US production, and forecasts calling for increased seeded acreage of soybeans in South America this year were also bearish.
However, some light commercial buying helped to limit the declines.
SOYOIL futures were slightly softer Wednesday, following the weakness in soybeans.
SOYMEAL futures were lower, taking some direction from the losses seen in Chicago soybean futures.
CORN futures in Chicago settled slightly higher, seeing gains of one to three cents US per bushel on Wednesday, lifted by positive domestic ethanol data.
Weekly ethanol production in the US jumped 2.3 per cent, with the data also indicating that domestic demand is expected to remain strong going forward, traders said.
Concerns about wet weather possibly delaying the US corn harvest in some regions this week further underpinned the market.
However, expectations that the USDA will increase average yields, production and stocks in their monthly report on Friday were bearish.
WHEAT futures were narrowly mixed in the US, with Kansas City, Chicago and Minneapolis futures finishing three cents lower to two cents US per bushel higher.
The markets saw a day of choppy activity, attempting to consolidate after the sharp rally seen earlier in the week, brokers said.
Concerns about dry weather reducing wheat yields in Australia and Russia lifted prices, as did worries about excess moisture causing damage to wheat in parts of South America.
Rising values for wheat in Europe were also behind the upward price action, analysts said.
On the other side, good planting progress for the US winter wheat crop weighed on values, as did the large global supply situation.
• Ending stocks estimates for the 2014/15 French wheat crop have increased to 4.4 million tonnes, according to reports.
• Japanese buyers purchased 5,500 tonnes of feed wheat in a tender in SBS on October 8, 2014, the country’s Ministry of Agriculture, said.
• Russia is providing North Korea with 23,000 tonnes of wheat as part of a humanitarian assistance package, the Foreign Ministry said, adding that more help will be given later on.
