By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Sept. 5 (CNS Canada) – ICE Futures Canada canola contracts settled narrowly mixed on Tuesday, as gains in the Canadian dollar countered any spillover strength coming from Chicago soybeans.
Soybeans posted solid gains on Tuesday amid concerns over Midwestern weather. However, soyoil was down and the Canadian dollar was stronger, which cut into canola crush margins.
Mounting harvest pressure also kept a lid on the canola market, with early yield reports generally beating expectations.
Statistics Canada releases its ending stocks report on Wednesday, September 6, and positioning ahead of the data accounted for some of the activity.
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About 19,373 canola contracts traded on Tuesday, which compares with Friday when 18,860 contracts changed hands. Spreading accounted for 8,276 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
Soybean futures at the Chicago Board of Trade were up 15 to 19 cents per bushel on Tuesday, as warm and dry conditions across the US Midwest were seen cutting into the yield potential in some areas.
Speculative short-covering added to the firmer tone, with some stops hit on the way up, according to participants.
Gains in crude oil provided additional support for soybeans. However, soyoil turned lower on the day, putting some pressure on values.
Corn prices were up three to four cents per bushel, as the Midwestern weather concerns and the strength in crude oil provided support.
US traders were also keeping an eye Hurricane Irma, and the potential for the developing storm to bring heavy rains to the Delta region.
Wheat was mixed, losing ground in Minneapolis but posting small gains in the Chicago and Kansas City contracts.
Improving technical signals accounted for some of the buying interest in the winter wheat futures, as prices continued to recover off of the lows hit last week.
However, rising production estimates out of Russia and Ukraine tempered the gains.
Seasonal harvest pressure kept a lid on the Minneapolis futures, as the harvest nears completion and yields continue to beat expectations.
