By Phil Franz-Warkentin and Dave Sims, Commodity News Service
Winnipeg, Sept. 22 – ICE Futures Canada canola contracts settled lower on Tuesday as losses in Chicago soybeans, bearish technicals, mounting harvest pressure, and a lack of aggressive end-user demand all weighed on prices.
Improved condition ratings for the US soybean crop sent the CBOT futures down to fresh six-year lows for the front month, and that selling spilled over to weigh on canola as well.
Relatively favourable harvest weather across Western Canada contributed to the softer tone in canola, amid ideas that farmer hedge pressure will soon pick up despite a lack of significant selling for the time being.
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Commodity funds adding to their short positions were noted sellers, as the charts remain bearish overall, according to an analyst.
However, chart support did hold to the downside. A weaker tone in the Canadian dollar also helped limit the losses in canola.
About 12,602 canola contracts were traded on Tuesday, which compares with Monday when 9,049 contracts changed hands.
Milling wheat, durum, and barley were all untraded.
SOYBEAN prices fell 10 to 12 cents per bushel lower Tuesday, as speculation grows this year’s harvest could be larger than expected.
Trader say yields in some parts of the Midwest may be higher than expected.
Brazilian soybeans are selling at a brisk pace as farmers there try to take advantage of a favourable currency exchange.
The US harvest is roughly 7 percent complete and ahead of last year’s pace of 3 percent.
SOYOIL was 37 points lower following losses in other vegetable oil markets.
SOYMEAL futures ended lower following soybeans.
CORN futures on the Chicago Board of Trade recorded losses of 3 to 4 cents per bushel on Tuesday, pushed down by forecasts of good weather in the US Midwest and lukewarm demand.
Prices were also buffeted by outside selling in equities, according to an analyst.
There are concerns yields in the US Midwest could turn out to be much better than expected.
Wheat futures on the Chicago Board of Trade ended slightly lower, as US exporters continue to have trouble moving supplies due to the strength of the US dollar.
The near-term contract hung in a steady range for most of the day but not before momentarily testing the key support level of US$4.90 per bushel.
However, wheat export inspections for the week were nearly 605,000 tonnes which exceeded analysts’ expectations.
Reports of dry conditions in Russia and Australia were also supportive for the market.
– meteorologists forecast that most of the former Soviet Union is to remain largely dry for at least the rest of the month, according to a report.
– In the past week Russia has exported more than 900,000 tonnes of grain.
– Sudan says it plans to lift its subsidy on wheat imports.
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