By Dave Sims, Commodity News Service Canada
Winnipeg, September 18 – The ICE Futures Canada canola market ended weaker Friday, tracking losses in the US soy complex while under growing harvest pressure.
One trader said he thinks many Canadian farmers have decided to start selling and canola could fall by as much as C$20 next week.
“I think the yields are better than everybody thinks they are, the genetics in some of this canola are pretty good,” he added.
The market is still feeling the impact from yesterday’s Statistics Canada report which raised the outlook for Canadian canola production from 13.3 million tonnes to 14.4 MT.
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However, wet weather continues to delay combining in parts of the Prairies which was supportive.
Gains in US wheat and subdued selling in US corn helped limit the losses, according to the trader.
A total of 18,963 canola contracts traded on Friday, which compares with Thursday when around 15,442 contracts changed hands.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN prices finished 17 cents per bushel lower Friday, pressured by concerns over foreign demand and continued good weather in the Midwest.
Worries persist over how economic troubles in China, the top buyer of American soybeans, will affect the country’s purchasing schedule going forward.
A trader says some regions of Iowa are preparing for record yields this season, brought on by a mix of potent seeds and perfect amounts of summer moisture.
“People haven’t seen crops like this, it will offset bad stuff in Illinois and Indiana,” the trader noted.
Soyoil was 62 points lower tracking losses in crude oil, Malaysian palm oil and European rapeseed futures.
SOYMEAL futures ended lower following soybeans.
Corn futures on the Chicago Board of Trade fell slightly lower Friday, pressured by uncertain demand for US supplies and the advancing harvest in the US corn belt.
Lower crude oil prices also weighed on the corn market as it reduced the incentive for refineries to brew corn-based ethanol as a fuel alternative.
Many farmers in the US may soon be forced to move old-stock supplies to make way for the new harvest, an analyst noted.
A lack of rain is expected to lower Ukraine’s corn crop by 20% in 2015, according to a report.
Wheat futures on the Chicago Board of Trade posted modest gains to finish the week, seeing some light buying as investors looked for bargains before the weekend.
Weakness in the US dollar helped wheat futures reverse the slide they had been on for the past three sessions.
Egypt put out a large tender yesterday which immediately drew bids from Ukraine and France, however the US did not participate due to uncompetitive prices, according to a report.
– in Ukraine the production of grains and pulses totaled 37.574 mln tonnes in bunker weight, as of September 1, 2015.
– France has bolstered its ban on the cultivation of genetically modified crops in the country, according to a report.
