Winnipeg – The ICE Futures canola market was weaker on Tuesday, breaking below nearby chart support. Seasonal harvest pressure and losses in Chicago soybeans contributed to the declines.
A move below C$448 per tonne in the November contract was bearish from a chart standpoint, which encouraged some additional speculative selling, according to a trader.
Better-than-expected yield reports as the harvest picks up across the Prairies also weighed on values. However, recent rainfall will cause delays in some areas.
Statistics Canada releases its first survey-based production estimates of the crop year on Wednesday, Aug. 28. Pre-report trade guesses range anywhere from 18.0 million to 20.5 million tonnes, which compares with the 20.3 million tonne crop grown in 2018/19.
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About 10,852 canola contracts traded on Tuesday, which compares with Monday when 13,148 contracts changed hands. Spreading accounted for 5,182 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, as crop conditions across the Midwest showed some improvement.
The United States soybean crop was rated 55 per cent good to excellent in the latest weekly U.S. Department of Agriculture crop report, which was up 2 points from the previous week.
Ongoing uncertainty over trade talks between the U.S. and China also kept some caution in the market, with no real concrete news on that front.
CORN was also pressured lower by improving crop conditions. The U.S. corn crop was rated 57 per cent good to excellent as of this past Sunday, which was up one point on the week.
However, development remains behind normal, with 71 per cent in the dough stage. That compares with the 87 per cent average for this time of year.
WHEAT futures were mostly higher on Tuesday, seeing a correction after recent losses. However, Minneapolis spring wheat lagged to the upside.
The U.S. spring wheat harvest was 38 per cent complete as of this past Sunday. That beat average expectations around 29 per cent, but was still behind the 65 per cent average for late August.
Spring wheat condition ratings were lowered slightly, to 69 per cent good to excellent.
OUTSIDE MARKETS
Light crude oil nearby futures in New York was up $1.29 at US$54.93 per barrel.
In the afternoon, the Canadian dollar was trading around US75.37 cents, down from 75.31 cents the previous trading day. The U.S. dollar was C$1.3267.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Nov 19 446.40s -2.00 -0.45%
Canola Jan 20 454.30s -1.90 -0.42%
Canola Mar 20 461.50s -1.70 -0.37%
Canola May 20 468.10s -1.50 -0.32%
Canola Jul 20 474.50s -1.60 -0.34%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound. Prices are displayed with fractions (2/8, 4/8, and 6/8) instead of decimals. -2 equals .25, -4 equals .50, -6 equals .75. The “s” means it is the settlement.
Chicago
Soybean Sep 19 846-2s -7-4 -0.88%
Soybean Nov 19 859-2s -8-0 -0.92%
Soybean Jan 20 873-0s -7-4 -0.85%
Soybean Mar 20 886-2s -7-2 -0.81%
Soybean May 20 897-2s -7-0 -0.77%
Soybean Meal Sep 19 291.5s -1.5 -0.51%
Soybean Meal Oct 19 293.6s -1.4 -0.47%
Soybean Meal Dec 19 297.0s -1.6 -0.54%
Soybean Oil Sep 19 28.01s -0.32 -1.13%
Soybean Oil Oct 19 28.14s -0.31 -1.09%
Soybean Oil Dec 19 28.35s -0.34 -1.19%
Corn Sep 19 357-0s -1-4 -0.42%
Corn Dec 19 366-2s -2-0 -0.54%
Corn Mar 20 377-6s -2-6 -0.72%
Corn May 20 386-0s -3-0 -0.77%
Corn Jul 20 393-0s -2-6 -0.69%
Oats Sep 19 256-2s -6-6 -2.57%
Oats Dec 19 267-0s -3-0 -1.11%
Oats Mar 20 271-2s -2-6 -1.00%
Oats May 20 271-0s -2-6 -1.00%
Oats Jul 20 272-2s -1-4 -0.55%
Wheat Sep 19 473-6s +0-6 +0.16%
Wheat Dec 19 476-6s +1-4 +0.32%
Wheat Mar 20 481-6s +0-2 +0.05%
Wheat May 20 484-2s -0-6 -0.15%
Wheat Jul 20 487-0s -1-4 -0.31%
Minneapolis
Spring Wheat Sep 19 494-2s +1-4 +0.30%
Spring Wheat Dec 19 511-0s -0-6 -0.15%
Spring Wheat Mar 20 524-2s -1-0 -0.19%
Spring Wheat May 20 533-6s -0-6 -0.14%
Spring Wheat Jul 20 543-4s -0-2 -0.05%
Kansas City
Hard Red Wheat Sep 19 392-6s +3-6 +0.96%
Hard Red Wheat Dec 19 404-6s +2-6 +0.68%
Hard Red Wheat Mar 20 420-0s +2-4 +0.60%
Hard Red Wheat May 20 429-6s +1-4 +0.35%
Hard Red Wheat Jul 20 439-2s +1-0 +0.23%
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle Aug 19 104.750s -0.725 -0.69%
Live Cattle Oct 19 99.775s -1.225 -1.21%
Live Cattle Dec 19 104.800s -1.175 -1.11%
Feeder Cattle Aug 19 138.550s -0.100 -0.07%
Feeder Cattle Sep 19 133.775s -2.225 -1.64%
Feeder Cattle Oct 19 132.500s -1.875 -1.40%
Lean Hogs Oct 19 63.225s -0.575 -0.90%
Lean Hogs Dec 19 62.900s -0.125 -0.20%
Lean Hogs Feb 20 70.100s -0.100 -0.14%
