By Dave Sims, Commodity News Service Canada
Winnipeg, September 28 – The ICE Futures Canada canola market suffered losses on Thursday, due to downward action in vegetable oil markets.
Seasonal harvest pressure contributed to the losses and crush margins are approaching seasonal lows.
Weakness in US soybeans dragged on the market and farmers have been selling supplies en masse.
Brazil is expecting to receive badly-needed rain on major soybean-growing areas, which was bearish.
However, more bad weather is expected to descend on Alberta by the weekend, which could cause additional delays in the harvest.
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“Some of my customers just barely got re-started and the weather’s going to fall apart on them in the next couple of days,” said a trader in Winnipeg.
The front-month contract received some technical support as well.
Around 10,776 canola contracts were traded on Thursday, which compares with Wednesday when around 29,908 contracts changed hands. Spreading accounted for 4,606 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
Soybeans finished five to six cents lower on Thursday.
Good yields are being reported during this year’s harvest and it’s weighing on the market.
On the other side, Argentina is expected to lose some soybean acreage to corn and wheat crops this year, which was supportive.
The USDA announced a sale of 132,000 tonnes of soybeans to China.
Weekly export sales were also strong. The agency pegged sales at an impressive 2.98 million tonnes.
Corn dropped one to two cents in tight, technical trading.
There’s really no fresh news to spark futures one way or the other right now, so tight, narrow trade looks to continue.
Traders were positioning themselves before the release of the USDA’s quarterly stocks report due out tomorrow.
There are ideas old crop stockpiles will be up significantly, which dragged on values.
Wheat was five to six cents weaker on Thursday.
Traders were squaring positions before tomorrow’s small grains report.
The Russian wheat harvest is racing ahead of schedule and their supplies are streaming into the market.
On the other side, weekly export sales were 435,700 tonnes, which were much higher than last week.
