By Terryn Shiells and Marney Blunt, Commodity News Service Canada
WINNIPEG, Aug 19 – ICE Futures Canada canola contracts ended weaker on Tuesday, as prices were undermined by the weakness seen in Chicago soyoil futures, analysts said.
Some of the losses were also linked to declines seen in the Malaysian palm oil market, which hit a new low in overnight activity.
Forecasts calling for beneficial weather in both the US and Western Canada this week added to the bearish tone.
Light trading volumes, as the market awaits Statistics Canada’s first production estimates of 2014/15 (Aug/Jul) on Thursday, helped to amplify the declines.
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However, slow farmer selling, as they wait for stronger prices, limited the losses, as did the sharply weaker Canadian currency.
About 8,937 contracts traded on Tuesday, which compares with Monday when 13,824 contracts changed hands. Spreading accounted for 4,056 of the trades.
Milling wheat, durum and barley futures were untraded, with wheat prices being adjusted higher after Tuesday’s close.
SOYBEAN futures in Chicago closed mixed on Tuesday, with new crop prices undermined by reports from to ProFarmer crop touring indicating that yields in Ohio and South Dakota would be higher than expected, analysts say.
A bearish weather forecast for the coming week is also making the market vulnerable to resume the downward trend, brokers say. Currently, 71 per cent of the soybean crop is rated as in good or excellent condition.
The September contract saw the only gains, lifted by strong demand and tight old crop supply worries.
SOYOIL futures in Chicago closed lower on Tuesday, following Malaysian palm oil futures, which hit fresh lows overnight.
SOYMEAL futures closed mixed on Tuesday, following soybeans.
CORN futures in Chicago were fractionally firmer to the bearish yield reports from the ProFarmer crop tour, brokers say.
Now on their second day, the ProFarmer crop tour forecast that corn crop yields in Ohio and South Dakota would top expectations.
Tour participants forecast corn yields in Ohio at 182.10 bushels per acre, above the 177 bushels per acre that the U.S. Department of Agriculture (USDA) had forecast on August 1.
In South Dakota, corn yields were pegged at 152.70 bushels an acre, topping the 139 bushels an acre that the USDA predicted at the beginning of the month.
Corn prices found some support from oversold price sentiment and strong demand.
WHEAT futures in Chicago rose slightly despite easing geopolitical tensions between Russia and Ukraine, traders say.
Worries over crop quality problems in Europe and strong commercial buying interest were bullish.
Drier weather in Europe put some downward pressure on values, as farmers to finish harvesting their crops. Harvesting had been delaying due to excessive precipitation.
– There have been reports of recent precipitation in eastern Australia and while it is too late to boost winter crop forecasts, it will still help to maintain the current crop outlook.
– In India, the Ministry of Consumer Affairs, Food and Public Distribution and the Ministry of Finance have decided to sell approximately ten million metric tonnes of wheat and rice has been sold from the Food Corporation of India in the open market to check the rising price.
– Traders announced that approximately 75 per cent of Germany’s wheat has now been harvested. There is a concern over the quality of the remaining 25 per cent.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
