By Dave Sims and Erin DeBooy, Commodity News Service Canada
Winnipeg, August 24 – THE ICE Futures Canada canola market finished lower on Wednesday, tracking losses in the Chicago Board of Trade soy complex.
Losses in crude oil and the vegetable oil market also weighed down values.
Statistics Canada pegged this year’s canola production on the low range of expectations, which may have put some hesitation in the market.
China is scheduled to limit the amount of dockage allowed in
imports of Canadian canola on September 1, which is causing some unease among traders.
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Chart-based trading was also a feature.
However, commercial interest is strong and canola is still viewed as a bargain relative to other oilseeds.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade fell three to eight US cents on Wednesday as the fall harvest edges closer.
Reports from the Pro Farmer crop tour are shoring up expectations for a bumper US output, with soybeans looking at potential record yields, weighing on prices.
Favourable weather forecasts continue throughout the Farm Belt, also weighing on the market.
SOYOIL weakened on Wednesday.
SOYMEAL weakened on Wednesday.
CORN futures fell two to three US cents on Wednesday, with the soon to expire September contract closing just above daily lows at US$3.2750 per bushel.
Crop scouts on the Pro Farmer crop tour continue to move into some of the best corn-growing regions in the US, increasing corn-yield estimates, weighing on prices.
Private exporters reported export sales of 101,600 tonnes of corn for delivery to unknown destinations, according to the USDA, limiting losses.
WHEAT closed lower on Wednesday, dropping one to three US cents per bushel.
Reports from the US Pro Farmer crop tour are estimating record yields for wheat, weighing on prices.
Traders are also hearing talk of large wheat production estimates in both Ukraine and Russia, adding pressure to the market.
The Farm Belt continues to receive favourable weather which is expected to continue through the last weeks of growing season.
-Even with record-breaking wheat yields, planted wheat acres in the US are declining due to lowering prices, according to reports.
– Global wheat production is tipped to beat out records for the fifth year in a row, according to reports. International wheat production is forecast to hit 738.5 million tonnes, up almost 3.71 million tonnes on last year and up 76 million tonnes on the global harvest five years ago.
