By Dave Sims, Commodity News Service Canada
Winnipeg, September 27 – The ICE Futures Canada canola market posted gains on Wednesday, due to action in the Canadian currency.
The Canadian dollar was nearly half a cent weaker, compared to its US counterpart, which made canola more enticing to domestic crushers and foreign buyers.
Wet and cool weather continues to cause some harvest delays in parts of Western Canada.
Gains in US soybeans underpinned the market.
However, the market was pressured by an announcement made yesterday by the U.S. Environmental Protection Agency. It is apparently considering cuts to biofuel requirements in the Renewable Fuel Act in 2018 and 2019, which was bearish for canola and other oilseeds.
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Increased farmer selling dragged on values, forecasts suggest rain could fall on dry regions of Brazil and soyoil ended weaker which weighed on canola.
Around 28,908 canola contracts were traded on Wednesday, which compares with Tuesday when around 18,514 contracts changed hands. Spreading accounted for 8,612 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
Soybeans were up one to two cents Wednesday. The market corrected higher this morning as large funds went bargain hunting after yesterday’s losses.
Late crop development and slow harvest activity also helped support the market.
Export demand and weather problems in South America underpinned values.
Corn ended one to two cents stronger in narrow trading on Wednesday.
Trading remains quite narrow as everyone waits for more information about the US harvest.
Old crop supplies are being delivered steadily and anytime there is a jump in price farmers start selling so the upside is extremely limited.
South Africa is sitting on a record crop this year of 16.5 million tonnes.
Wheat finished six to seven cents higher in speculative trade.
There are some concerns about the quality of the Canadian wheat crop in certain areas, which may have thrown some support under prices.
Rain has fallen on much of the US plains which is delaying planting of winter wheat.
