By Jade Markus and Dave Sims, Commodity News Service Canada
Winnipeg, July 13 (CNS Canada) – ICE Futures Canada canola closed weaker on Thursday, tracking sharp losses in the US soy complex.
Chicago Board of Trade soybeans, soy meal and soy oil all dropped sharply, pressured by improving crop conditions in the US.
Follow-through selling after yesterday’s bearish supply and demand report from the United States Department of Agriculture added further pressure to soybeans.
While not seeing the same strength it did yesterday, the Canadian dollar advanced against its US counterpart on Thursday, which added pressure to canola.
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A weaker technical bias was also a feature.
Around 17,619 canola contracts traded on Thursday, which compares with Wednesday when around 23,303 contracts changed hands. Spreading accounted for 3,090 of the contracts traded.
Durum and barley were untraded and unchanged, while milling wheat was revised after the close.
Settlement prices are in Canadian dollars per metric tonne.
WHEAT futures in Chicago continued to plummet due to follow-through selling. On Thursday, futures dropped 21 to 25 cents per bushel.
Yesterday’s supply and demand report from the USDA pegged winter wheat at 1.279 billion bushels, which was 29 million bushels higher than the June forecast.
Some scattered showers are forecast to fall in key regions of the US Plains, which was bearish for values.
On the other side, the Rosario Grains Exchange lowered its estimate for Argentina’s wheat crop, which was mildly supportive.
SOYBEAN futures at the Chicago Board of Trade plunged 40 to 46 cents per bushel on Thursday.
Prices continued to feel pressure from the USDA report, which raised the estimate for US soybean production. World ending stocks were also increased, adding to the downside.
Ideas the market was overbought also dragged down prices.
SOYOIL futures dropped 45 to 49 points, tracking soybeans.
SOYMEAL futures suffered big losses on the day.
CORN futures in Chicago fell 14 to 15 cents per bushel on Thursday, weighed down by forecasts calling for rain in the US Corn Belt.
Weekly export sales fell below analysts’ expectation. The USDA reported sales of old crop at 161,000 tonnes, which was well off trade guesses of 300,000 to 500,000 tonnes.
China sold over 400,000 tonnes of corn at a state auction yesterday, which undermined the market.
