Winnipeg, MB, July 11, 2014 (CNS Canada), Jul 11, 2014

ICE Futures Canada canola contracts ended sharply lower on Friday, following the Chicago soy complex after the release of a bearish USDA report, analysts said.

The USDA pegged US and world ending stocks of soybeans at very large levels for 2014/15, which caused oilseed prices to move lower on Friday. US ending stocks in 2014/15 were pegged at 415 million bushels, while world stocks were pegged at 85.3 million tonnes. In June, the USDA estimated world stocks at 82.88 million tonnes and US carryout at 325 million bushels.

Chart-based selling after the market tested and broke below support at C$440 per tonne in the November contract added to the bearish tone.

Fading demand for canola, as it is no longer cheap compared to other oilseeds, further undermined the market, as did reports of good growing conditions for the US soybean crop.

However, slow farmer selling, along with ongoing worries about flood damage in Western Canada helped to limit the declines. The sharply weaker Canadian dollar was also supportive.

About 15,826 contracts traded on Friday, which compares with Thursday when 13,378 contracts changed hands.

Milling wheat, durum and barley futures were untraded and unchanged.

Settlement prices are in Canadian dollars per metric ton.

                          Price      Change
Canola            Nov     439.90    dn  9.50
                  Jan     442.80    dn  9.30
                  Mar     442.20    dn  8.90
Milling Wheat     Oct     192.00      unch
                  Dec     198.00      unch
Durum             Oct     250.00      unch
                  Dec     256.10      unch
Barley            Oct     132.50      unch
                  Dec     134.50      unch

Commodity News Service Canada