By Dave Sims, Commodity News Service Canada
Winnipeg, August 15 – THE ICE Futures Canada canola market suffered more losses on Tuesday, dropping below the psychologically-important C$500 per tonne mark.
Losses in the US soy complex and Malaysian palm oil spear-headed today’s drop.
Last week’s USDA report, which called for a massive soybean crop in the US, continues to overhang the market.
“I think the funds are really loading up on the short side,” said a trader in Winnipeg.
Crush margins continue to dwell near their lowest levels since the summer of 2016 and farmer selling has been slow.
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However, the Canadian dollar was lower, compared to its US counterpart, which made canola more attractive to foreign buyers.
There are concerns about potential yield losses in this year’s canola crop due to heat-stress earlier in the summer.
Soybeans finished 11 to 15 cents lower, weighed down by expectations of a large US crop and improving weather conditions in the Midwest.
On Monday, the USDA released its crop conditions report, and while the amount of soybeans considered to be either good or excellent fell, it didn’t decline by as much as many analysts were expecting.
Strength in the US dollar also created headaches for US exporters.
According to the USDA, 132,000 tonnes of soybeans have been shipped to China and another 132,000 tons to an unknown buyer.
Corn ended seven to eight cents lower on Tuesday.
The market was pressured by the USDA crop condition rating, which rose two percent yesterday to 62 percent good to excellent.
Heavy rains are expected across the US Midwest this week which was bearish.
On the international scene the Chinese corn crop is being damaged by rain and insects.
Wheat recorded losses of 11 to 13 cents a bushel due to large world supplies and fund selling.
Forty percent of the spring wheat in the US has been harvested, which is five percent more than the five-year average.
Russia has begun exporting wheat supplies to Venezuela.
