By Terryn Shiells, Commodity News Service Canada
WINNIPEG, July 31 – ICE Futures Canada canola contracts ended slightly lower after a day of quiet, choppy activity on Thursday.
Traders were being cautious ahead of the long weekend, as Canadian markets will be closed for a Civic Holiday on Monday, August 4. They were also awaiting news about 2014/15 (Aug/Jul) Canadian canola prospects from CWB’s (formerly known as the Canadian Wheat Board) crop tour later Thursday afternoon.
Ongoing expectations of a very large 2014/15 US soybean crop were bearish for canola prices, analysts said.
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Improving weather for crop development in many parts of Western Canada this week also weighed on prices.
However, recent softness in the Canadian dollar, slow farmer selling and ongoing worries about production problems in Western Canada helped to underpin prices.
About 10,437 contracts traded on Thursday, which compares with Wednesday, when 15,490 contracts changed hands. Spreading accounted for 5,004 of the trades.
Milling wheat, durum and barley futures were untraded, though the Exchange adjusted wheat prices following Thursday’s close.
SOYBEAN futures at the Chicago Board of Trade ended mixed, falling from earlier gains on Thursday. Prices finished three cents lower to four cents higher.
Positive weekly export sales data from the USDA, which showed sales totalling 1.48 million tonnes for old and new crop supplies, was bullish, participants said.
On the other side, forecasts calling for beneficial rainfall and cooler weather in parts of the US Midwest next week limited the advances.
SOYOIL futures were little changed, following the mixed action seen in soybean futures.
SOYMEAL futures closed fractionally higher, seeing an upward correction following Wednesday’s sharp declines, brokers said.
CORN futures in Chicago settled softer on Thursday, ending with losses of two to five cents per bushel.
Disappointing weekly export sales for old crop corn helped to push prices lower. The USDA said 173,800 tonnes of US corn was sold for 2013/14 delivery during the week, falling below expectations.
Continued ideas that the US corn crop will be record large were also bearish, market watchers said.
However, new crop export sales data was better than expected at 1.09 million tonnes for 2014/15 delivery, which provided some support for prices.
WHEAT futures were mixed, with Chicago futures finishing two cents a bushel lower to three cents higher. Minneapolis and Kansas City futures ended unchanged to nine cents per bushel higher.
Better than expected USDA export sales data was bullish for the markets.
Steady commercial buying interest and worries about production problems in France were also supportive, traders said.
On the other side, generally good growing conditions in other parts of the world and pressure from the advancing US winter wheat harvest were bearish.
• The USDA said 801,000 tonnes of US wheat were sold for delivery during the week, beating expectations of 300,000 to 575,000 tonnes.
• The November Paris Milling wheat future fell to a new contract low of 171.50 euros early Thursday morning.
• Rio Grande do Sul in Brazil planted has 2.7 million acres of wheat this year, which is expected to produce 3.1 million tonnes, reports say.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
