By Jade Markus and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, December 13 (CNS Canada) – ICE Futures Canada canola declined further on Tuesday, tracking losses in the US soy complex.
Chicago Board of Trade soybeans, soy oil and soy meal lost ground, pressured by mostly favourable South American growing conditions.
Market watchers say canola’s technical bias is to the downside, which is bearish.
About 20,202 canola contracts traded on Tuesday, which compares with Monday when 20,110 contracts changed hands.
Spreading accounted for about 17,020 of the contracts traded.
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Durum and barley futures were untraded and unchanged, while milling wheat was revised lower after the close.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were down by one to three cents per bushel on Tuesday, retreating from earlier gains as the early buying interest ran out of steam.
Large US supplies and relatively favourable South American crop conditions contributed to the softer tone in soybeans, according to participants
However, reports some Chinese soybean crushing plants could be closed, as the country cracks down on inspections, provided support as the possibility of tightening soymeal supplies in China could swing more demand to the US.
The US Federal Reserve is generally expected to be announcing an interest rate hike on Wednesday, and positioning ahead of the Fed announcement found its way into the grains and oilseeds as well.
SOYOIL futures were down on Tuesday, with spreading against soymeal behind some of the weakness.
SOYMEAL futures were up for most of the day on Tuesday, but finished lower with soybeans.
CORN futures in Chicago were steady to up two cents per bushel on Tuesday, as continued strength in crude oil provided support.
Crude oil remained pointed higher on ideas that that OPEC (the Organization of Petroleum Exporting Countries) would move ahead with implanting production cuts.
However, large US supplies and relatively favourable South American crop prospects limited the upside.
WHEAT futures in Chicago finished within a penny of unchanged in the most active months on Tuesday, seeing some consolidation after bouncing off of nearby lows in recent sessions.
Speculative short-covering accounted for most of the strength in wheat, although the underlying fundamentals remain relatively bearish.
World wheat supplies are more than sufficient to meet demand, while early forecasts for 2017 production are looking large in many countries.
