By Dave Sims, Commodity News Service Canada
Winnipeg, December 6 (CNS Canada) – Canola contracts on the ICE Futures Canada platform suffered losses on Wednesday, after Statistics Canada predicted this year’s production would hit 21.3 million tonnes.
The forecast surprised analysts who had pegged production at just over 20 million tonnes before the report came out. Some said they didn’t think the crop would be this big because of the dry conditions that hit parts of Saskatchewan and Alberta in the summer. Farmers grew 19.6 million tonnes of canola in Canada last year, which was a record at the time.
Elsewhere, losses in the U.S. soy complex helped drag down prices.
However, the Canadian dollar was down over half a cent relative to its U.S. counterpart, which made canola more affordable on the international market.
Around 21,814 canola contracts were traded on Wednesday, which
compares with Tuesday when around 29,979 contracts changed hands. Spreading accounted for 13,290 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade fell four to five cents on Wednesday in technical selling.
Some soybean farmers in Brazil are turning to the barter system due to low margins. They are giving up a portion of their crop to local supply companies who in turn give them their input materials.
Dry conditions are expected to stick around in Argentina for the next few weeks.
Corn ended roughly one cent lower.
Commercials were selling supplies while most speculators engaged in narrow trading.
Grain Lobby Coceral hiked its estimate for corn production in Europe to 61 million tonnes, which is up from the October estimate of 60 million.
Demand from the livestock feed sector was bullish for corn while ethanol production reached an all-time weekly high.
Wheat futures finished six to seven cents lower on Wednesday, due to some technical selling and large world supplies.
A recent surge of supplies from the Black Sea region are putting pressure on U.S. exporters.
Canada’s all-wheat crop was estimated to be 30 million tonnes in Wednesday’s Statistics Canada report, which was more than what most analysts expected.
Europe’s wheat crop was estimated to be 142 million tonnes by Grain Lobby Coceral, which was up slightly from the previous estimate.
Commodity Future Prices
updated 2017-12-06 13:19
Prices are in Canadian dollars per metric ton