By Terryn Shiells and Dave Sims, Commodity News Service Canada
WINNIPEG – ICE Futures Canada canola contracts ended mostly lower on Tuesday, following the losses seen in Chicago soyoil futures, analysts said.
Spillover pressure from the weakness in Malaysian palm oil futures and ideas that North American oilseed crops are generally in good condition added to the bearish tone.
Some of the price weakness was also linked to the canola market’s technical bias, which is pointed lower, brokers added.
However, some spillover support from the gains seen in Chicago soybean futures limited the losses, as did slow farmer selling.
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Worries about delayed seeding in parts of Manitoba and Saskatchewan were also supportive, as were continued ideas that canola is undervalued compared to other oilseeds.
About 16,983 canola contracts were traded on Tuesday, which compares with Monday when 12,428 contracts changed hands. Spreading accounted for 7,660 of the contracts traded.
Milling wheat and durum were untraded following revisions by the Exchange after Tuesday’s close. Barley futures traded for the first time in many months, with 5 October contracts changing hands at weaker prices.
CORN futures in Chicago fell three to six cents per bushel Tuesday, on word the American government will raise its projections for stockpiles in the upcoming marketing year.
The USDA will likely peg inventories at the end of August 31, 2015 to 1.746 billion bushels, according to a report. That would be a 51% increase over the prior year.
Stockpiles are expected to accompany the production.
Continued rainfall in the US Midwest has improved the outlook for the US crop.
SOYBEAN futures at the Chicago Board of Trade closed three to six cents per bushel higher Tuesday, on speculation the USDA will lower its outlook for stockpiles in the next marketing year. Inventories on August 31, 2014 will likely be 127 million bushels, three million less than initially thought.
Thunderstorms this week in the Delta are expected to improve soil moisture for soybean crops.
The weekly progress report lists soybean plantings at 87% versus the 81% average.
SOYOIL futures were lower on Tuesday.
SOYMEAL futures were higher, with spreading against soyoil, a feature.
WHEAT futures in Chicago ended eight to 11 cents per bushel lower Tuesday and seven to eight cents per bushel lower in Kansas City on choppy trading that took values to just above the psychologically-important US$6.00 per bushel mark.
There is speculation recent rains improved the condition of the hard-red winter wheat crop. Most of the crop is based in Kansas and Oklahoma, according to a report.
The weekly progress numbers listed winter wheat 86% headed versus the 85% average and 9% harvested versus the 12% average.
• Central China is drier and somewhat hotter at this time, which will favor maturing winter wheat and the harvest of wheat, reports say.
• The National Association of Wheat Growers says Japan should be excluded from the Trans-Pacific Partnership if it cannot provide significant market access to the US.
• France exported 1.1 million tonnes of soft wheat outside the European Union in April. That takes the volume since the start of the 2013/14 season in July to 10.5 million tonnes, according to a report.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
