By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, September 30 – THE ICE Futures Canada canola market ended lower after a volatile session that was influenced by the release of the USDA’s quarterly stocks report. The USDA pegged US soybean stocks at 191 million bushels which is a four-year high. Canola fell lower in sympathy with US soyoil which suffered significant losses.
Weakness in Malaysian palm oil and European rapeseed futures also put pressure on prices.
SOYBEAN futures at the Chicago Board of Trade were eight to twelve cents per bushel higher on Wednesday, as the market had a positive response to the USDA’s quarterly stocks report.
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The government agency pegged US soybean stocks, as of September 1, at 191 million bushels. While the supplies were the largest in four years, they were below pre-report guesses and provided some support overall.
The USDA also lowered their production estimate for 2014, with last year’s crop now pegged at 3.927 billion bushels from 3.969 billion.
On the other side, the advancing US harvest and relatively favourable yield reports did limit the upside potential.
The Canadian dollar was also higher relative to its US counterpart which made canola less attractive to domestic
crushers and foreign buyers.
Farmer selling pressured prices along with the advancing Canadian harvest.
However, soybeans were stronger which helped limit the losses.
Commercial demand has been steady which helped support the market.
Around 25,007 canola contracts were traded on Wednesday, which compares with Tuesday when around 32,438 contracts changed hands.
Milling wheat and durum were both untraded while 10 barley contracts traded.
Settlement prices are in Canadian dollars per metric ton.
SOYOIL settled lower on Wednesday, as losses in crude oil and spreading against soymeal weighed on values.
SOYMEAL futures were higher on Wednesday, following soybeans.
CORN futures in Chicago were narrowly mixed on Wednesday, although the bias was lower in the most active contracts.
US corn supplies, as of September 1, were pegged at 1.731 billion bushels by the USDA. Just as in soybeans, the number was below average trade estimates but still very large historically speaking.
WHEAT futures in Chicago were up six to nine cents per bushel on Wednesday, as the USDA lowered its production estimate for the US crop.
The 2015/16 US wheat crop is now estimated at 2.052 billion bushels by the USDA, down from an earlier forecast of 2.136 billion.
Total wheat stocks, as of September 1, came in at 2.089 billion bushels. That was up from the year ago level, but below pre-report guesses.
Speculative short covering and concerns that Hurricane Joaquin may cause seeding delays were also supportive for wheat.
