By Dave Sims, Commodity News Service Canada
Winnipeg, September 26 – The ICE Futures Canada canola market finished lower on Tuesday as the independent strength canola had been showing over the past few sessions fizzled out.
Losses in the US soy complex, particularly soyoil, weighed down the market.
Deliveries by producers have been steadily strengthening over the past month. Over 500,000 tonnes of canola was dumped into elevators last week, which was bearish for prices.
The Canadian dollar was slightly stronger, relative to its US counterpart, which dragged on values.
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However, gains in Malaysian palm oil and harvest delays in Alberta helped support the market.
Export sales have picked up recently and global demand for oilseeds remains strong.
Around 18,514 canola contracts were traded on Tuesday, which
compares with Monday when around 21,538 contracts changed hands. Spreading accounted for 7,154 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
Soybeans were down six to seven cents Tuesday as traders engaged in technical selling.
The soybean basis is weakening in many areas of the US due to harvest pressure and higher prices for river barges.
The market sunk below the 200-day average which intensified the selling.
Corn ended one cent weaker in narrow trading on Tuesday.
On Friday, the USDA is expected to release its quarterly stocks number and there are ideas the US stocks for 2016/17 could be record large.
Overseas, good weather has helped South Africa shake off the effects of a recent drought and produce a crop that is expected to double last year’s production.
Wheat finished mostly unchanged in narrow, chart-based trading.
The USDA is expected to lower its spring wheat estimate in Friday’s small grains report, which was supportive.
Weather problems in Argentina and Australia also helped to prop up prices.
Some traders are spreading wheat against soybeans.
