By Terryn Shiells and Jade Markus, Commodity News Service Canada
Winnipeg, July 29 – Canola contracts on the ICE Futures Canada trading platform ended narrowly mixed after a day of light and choppy activity on Wednesday.
Weakness in outside vegetable oil markets, including Chicago soyoil and Malaysian palm oil futures, weighed on the market, traders said.
The market’s technical bias is also pointing lower, as it failed to follow through on Tuesday’s gains, according to analysts.
Beneficial rains in parts of Alberta and Saskatchewan have fallen recently, helping to stabilize canola crops, which was also bearish.
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Though, there are some concerns about too much rain falling in Manitoba, which was supportive. Excessive heat during the flowering period could also lower canola yield potential, brokers noted.
Ongoing ideas that Monday’s sell-off was overdone underpinned prices, as did expectations of tight supplies at the end of the 2015/16 (Aug/Jul) crop year.
About 12,915 contracts traded on Wednesday, which compares with Tuesday when 21,907 contracts changed hands. Spreading accounted for 4,046 of the trades.
Milling wheat, durum and barley futures were all untraded. Though, the Exchange moved wheat prices lower after Wednesday’s close to reflect the weakness in US wheat futures.
SOYBEAN futures at the Chicago Board of Trade closed eight cents per bushel higher to two cents per bushel lower on Wednesday as the greenback gained ground.
A lack of improvement in crop conditions partially supported prices, analysts say.
A weekly USDA crop progress report left soybean conditions unchanged from the week prior, which is bullish.
However, analysts say soybean exports are starting to slow, which pressured prices.
SOYOIL prices settled weaker on Wednesday as analysts say exports are slowing.
SOYMEAL closed higher on Wednesday, underpinned by strong demand.
CORN futures closed four to seven cents per bushel weaker on Wednesday, as concerns about US crop conditions are fading, according to analysts.
Market watchers say US corn supplies will likely remain in surplus throughout the year.
In recent weeks ethanol production has stayed the same, which added to the bearish tone.
WHEAT futures in Chicago closed 12 to 15 cents per bushel weaker Wednesday as the US dollar gained ground after a US Federal Reserve meeting.
A stronger dollar makes exports less attractive to foreign buyers, market watchers say.
Analysts say high global supplies also pressured wheat prices.
• Market watchers say Russia’s grain harvest is 21 per cent complete.
• A spring wheat tour in North Dakota hit new records on its first day, finding yields of 51.1 bushels per acre.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
