By Terryn Shiells and Jade Markus, Commodity News Service Canada
Winnipeg, August 19 – Canola contracts on the ICE Futures Canada trading platform ended mixed on Wednesday, as some traders tried to push values higher during the last few minutes of activity.
The mixed close was also linked to positioning ahead of Friday’s Statistics Canada production report, traders said.
Further support came from the downswing in the value of the Canadian dollar, as it made canola more attractive to crushers and exporters.
There’s also still enough uncertainty about the upcoming Canadian canola crop to keep some caution in the market.
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On the other side, declines in the Chicago soybean complex spilled over to weigh on canola prices.
Reports of improving crop conditions and early harvest activity in some Canadian canola fields were also bearish, as were worries about slowing demand from China.
About 22,324 contracts traded on Wednesday, which compares with Tuesday when 23,497 contracts changed hands.
Milling wheat, barley and durum futures were untraded and unchanged.
SOYBEAN futures at the Chicago Board of Trade closed six to eleven cents per bushel lower Wednesday as favourable growing conditions continued to pressure prices.
Soybean prices neared a six-year low as rains in the US Farm Belt on Monday and Tuesday had a bearish effect on prices.
August rains are important for oilseed development, market watchers say, as pods are starting to fill.
Analysts say continued concern about demand from China added to the bearish tone.
SOYOIL prices settled weaker on Wednesday following soybean futures.
SOYMEAL closed lower Wednesday, following neighbouring markets.
CORN futures closed one cent per bushel lower to one cent per bushel higher, with weakness in far contracts, on Wednesday ahead of the results of a US crop tour.
The 2015 Pro Farmer Midwest Crop Tour is expected to release its results in full on Friday.
Data that has been made public so far supported corn prices as the tour’s projected yield is lower than the USDA.
WHEAT futures in Chicago closed two cents per bushel lower to two cents per bushel higher Wednesday, with weakness in far contracts, as investor short-covering made up for a lack of bullish factors.
Market watchers say lower wheat prices in Europe and Russia are making it hard for US wheat to stay competitive, which is bearish.
As the US harvest moves closer to completion, demand for wheat has been relatively low, which is pressuring prices in the face of high global supplies.
Analysts say grain markets are still being impacted by concerns over China’s economy.
– Ukraine’s grain harvest is expected to total 59.1 million metric tonnes, according to the report put out by the Economic Development and Trade Ministry of Ukraine, which is 6.4 per cent than last year.
– Traders say Russia’s wheat exports will likely be less than last year.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
