By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, July 19 (CNS) – The ICE Futures Canada canola market suffered losses on Wednesday, as traders took profits in the wake of yesterday’s gains. More rain is expected to fall in Western Canada this week which should alleviate some of the heat stress affecting canola crops.
The Canadian dollar was about a quarter of a cent stronger, relative to its US counterpart, which weighed down prices.
Crush margins are deteriorating which suggests rationing of canola has already begun.
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However, gains in the US soy complex and Malaysian palm oil were supportive for canola.
There are ideas the recent heat blast in Western Canada has already damaged some of the canola crop.
Tight Canadian canola stocks and steady global demand for oilseeds underpinned the market.
About 12,030 canola contracts traded on Wednesday, which compares with Tuesday when 12,849 contracts changed hands. Spreading accounted for 2,546 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade strengthened nine to 11 cents per bushel on Wednesday, underpinned by concerns about the US crop.
Hot, dry weather in the US Midwest still has the potential to put crops at risk, which is bullish.
Declining crop conditions were also supportive.
A weaker US dollar furthered advances, as it makes the country’s commodities more appealing to international buyers.
Spill-over strength from the soyoil and soymeal markets added to the upside.
SOYOIL prices closed stronger on Wednesday.
SOYMEAL advanced on Wednesday.
CORN futures were about five to six cents per bushel stronger on Wednesday, underpinned by dry and hot weather in key growing regions.
Ideas that yields will be lower this year as crops move into a key development phase supported the market.
A lower US dollar was also bullish for the grain.
WHEAT closed mostly unchanged on Wednesday.
The market was slightly higher with support from uncertainty about crop conditions in the US.
Losses in the US dollar were also supportive for wheat.
However, ideas that winter wheat stocks are ample limited the market’s upside, reports said.
