By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, July 2 – THE ICE Futures Canada canola market finished lower in choppy trading Thursday – as traders took profits off gains made in the previous session. Values were also catching up to losses suffered in US soybean and soyoil futures yesterday when the Canadian market was closed.
Traders positioned themselves ahead of the July 4th holiday in the US, according to a trader. He said some large funds may consider trying to move values around on Friday when the US markets are closed.
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“You might get some funds coming in to see if they can push canola around a little bit while it’s on its own, that sometimes does happen. Money comes in to try and jerk canola around and see if they can get some things going.”
Large world supplies of soybeans cast a bearish tilt over the market.
However, canola received some strength from US soyoil which was higher on the day.
Persistent dry conditions across Alberta and Saskatchewan
continue to support prices.
The Canadian dollar was lower compared to the US dollar, which made canola more attractive from a pricing standpoint on the international market.
Milling wheat, durum, and barley were all untraded.
Around 18,889 canola contracts were traded on Thursday, which compares with Tuesday when around 23,130 contracts changed hands.
Milling wheat, barley and durum were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed two cents per bushel lower to four cents per bushel higher on Thursday, as the US Farm Belt is expected to get a drier July-though parts are still rainy.
Concerns that millions of acres of the crop could go unseeded due to flooding provided some support for prices.
However, foreign demand for soybeans is not as high as expected, traders say.
US Markets will be closed Friday July 3 ahead of Independence Day. Analysts said positioning ahead of the long weekend was a feature.
SOYOIL prices settled stronger on Thursday following neighbouring markets.
SOYMEAL closed lower on Thursday as increased production in India may mean more soymeal exports.
CORN futures closed one to six cents per bushel stronger on Thursday as an agricultural research and analysis company reduced its estimate for the crop by 152-million bushels.
Informa Economics, Inc. has estimated this year’s corn production at 13.412 billion bushels, which is less than
previous estimates, which is bullish, analysts say.
Prices were also supported by the most recent USDA acreage report, which showed the crop’s health ratings were declining due to soil moisture.
WHEAT futures in Chicago closed one cent per bushel lower to five cents per bushel stronger on Thursday, as Informa Economics reduced their winter wheat production estimate to 1.477-billion bushels.
However, Informa Economics increased their production estimates for hard red wheat by two-million bushels, bringing the production estimate for the crop up to 889-million bushels.
Market watchers say a drier outlook for the US Midwest could have a bearish effect on prices in coming weeks.
