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Informa Economics increased its forecast of South American soybean crops, pressuring canola and soybeans lower on Wednesday.
Informa put Brazilian production at 66.5 million tonnes and Argentina at 54 million. Compared to the U.S. Department of Agriculture’s forecast that is an increase of 1.5 million for Brazil and one million for Argentina.
Informa also increased its forecasts for South American corn crops to well above USDA levels.
That pressured wheat and corn lower.
Crop prices were also pressured by a general reversal in commodity prices as the momentum that built up on Tuesday, associated with the weaker U.S. dollar that day, failed to carry through to a second day.
Statistics Canada will release a grain and oilseed stocks report on Feb. 5.
Much of the trade in canola was spread related with traders rolling out of March and into the May contract.
March canola fell $3.20 to close at $377 per tonne on 10,349 trades.
May fell $2.60 to $382.90 on 5,383 trades. New crop November fell $2.70 to $394.50 per tonne on 1,074 trades.
The Canadian dollar at noon Wednesday was 94.26 cents US, down slightly from 94.28 cents at noon the previous trading day. The U.S. dollar at noon was $1.0609 Cdn.
The Winnipeg March barley contract rose $1 to $148 per tonne with 26 trades. May rose $1.90 to $152 on 10 trades.
March soybeans fell 17.5 cents to $9.08 US per bushel. November soybeans were $9.07 per bu.
Light crude oil in New York for March delivery closed at $76.98 US per barrel, down 25 cents.
Reuters reported that traders believe buyers will eagerly turn to South American supply once harvest there begins because American crops have quality problems due to the late harvest.