By Terryn Shiells and Marney Blunt, Commodity News Service Canada
WINNIPEG, Aug. 20 – ICE Futures Canada canola contracts ended mixed on Wednesday, with only the three front months moving lower. The November contract also tested new lows during the day.
The correction of the spread between the front months and more deferred contracts was behind the mixed settlement, analysts said.
Some downward pressure came from the unwinding of long canola, short Chicago soyoil spreads ahead of Thursday morning’s Statistics Canada production report, due out at 7:30 CDT.
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Spillover pressure from the softness in Chicago soybeans and good weather expected for oilseed crops in North America this week were also bearish.
On the other side, some support came from weakness in the value of the Canadian dollar and a lack of significant farmer selling as they wait for more attractive prices.
About 17,500 contracts traded on Wednesday, which compares with Tuesday when 8,937 contracts changed hands.
Milling wheat, durum and barley futures were untraded following price revisions to wheat following Wednesday’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.
