By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 1 (MarketsFarm) – The ICE Futures canola market was weaker on Tuesday, although well off its session lows after uncovering support to the downside. Speculative positioning and improving moisture conditions in parts of Western Canada contributed to the declines.
Follow-through selling after Monday’s decline accounted for some of the early weakness in canola, with the November contract falling as low as C$771 per tonne at one point during the session. However, the contract was eight dollars off that low by the final bell.
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The Chicago soy complex managed to turn higher after posting early losses, providing some spillover support for canola.
Weakness in the Canadian dollar, which was down by over half a cent relative to its United States counterpart, also underpinned the futures.
About 36,745 canola contracts traded on Tuesday, which compares with Monday when 24,553 contracts changed hands. Spreading accounted for 20,664 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade moved to both sides of unchanged on Tuesday but managed to settle with gains in the most active contracts.
Declining condition ratings for the United States soybean crop provided some support, with soybeans losing two points in the good-to-excellent category on the week – now at 52 per cent. An estimated 83 per cent of the crop was blooming, slightly ahead of the 78 per cent average, with 50 per cent setting pods.
CORN condition ratings were also down on the week, but shifting weather forecasts kept the market under pressure.
The U.S. corn crop was rated 55 per cent good-to-excellent in the latest weekly report, which was down two points from the previous week with 84 per cent in the silking stage of development.
Forecasts calling for milder temperatures and welcome rains in parts of the Corn Belt over the next week weighed on values.
WHEAT was mostly lower, with the largest losses in the winter wheats while Minneapolis spring wheat held closer to unchanged.
The U.S. winter wheat harvest was 80 per cent complete as of this past Sunday, one point ahead of pre-report expectations.
Meanwhile, spring wheat condition ratings dropped sharply in the country, losing seven points in the good-to-excellent category at 42 per cent.
General strength in the U.S. dollar was also bearish for wheat, cutting into export demand.
The ongoing conflict between Russia and Ukraine remained a feature in the background of the wheat market, with news that an Israeli vessel had made it through the Black Sea blockade and into Ukrainian waters leading to ideas Ukrainian grain may still be able to move through the Black Sea despite Russia exiting the deal.
