Winnipeg (MarketsFarm) – The ICE Futures canola market was down sharply on Tuesday, breaking below nearby chart support as speculators turned to the sell side.
Recent rainfall across Western Canada accounted for some of the selling pressure, as dryness concerns have alleviated somewhat. Losses in Chicago Board of Trade soybeans and soyoil also weighed on values.
However, many of the driest canola growing areas of Saskatchewan only received minimal precipitation, and total canola production is expected to be down on the year.
Statistics Canada will release updated acreage estimates on Wednesday, June 26. General expectations are for a decline in the canola number from earlier estimates, but the extent of the revision remains to be seen.
About 22,315 canola contracts traded on Tuesday, which compares with Monday when 17,686 contracts changed hands. Spreading accounted for 12,978 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, retreating from earlier gains by the close.
The United States soybean crop was 85 per cent seeded as of this past Sunday, according to the latest weekly U.S. Department of Agriculture report. That was well behind the 5-year average of 97 per cent done.
While the slow seeding pace was supportive, the market ran into resistance to the upside, as forecasts calling for some better weather over the next week should allow farmers to get in more of the bean crop.
The USDA will release updated acreage estimates on Friday, but traders are uncertain if this report will show the extent of the lost acres due to wet weather.
Optimism over U.S. and China trade relations provided some support, as the leaders of the two countries are set to meet at the G20 in Japan later this week.
CORN held onto small gains in the most active months on Tuesday.
The U.S. corn crop was 96 per cent seeded in the latest report – with the last four per cent of intended acres unlikely to be planted at this time.
Condition ratings declined four points on the week, to come in at 55 per cent good-to-excellent. Development was running behind normal.
WHEAT was narrowly mixed on the day, with gains in Minneapolis spring wheat and a steady to softer tone in the winter wheats.
U.S. wheat condition ratings declined in the latest weekly report, with spring wheat down two points at 75 per cent good-to-excellent and winter wheat down three points at 61 per cent good to excellent.
The U.S. winter wheat harvest was 15 per cent complete, which is well off the 34 per cent average for this time of year.
Hot and dry weather in Europe was also supportive for wheat.
In the afternoon, the Canadian dollar was trading around US75.91 cents, up from 75.79 cents the previous trading day. The U.S. dollar was C$1.3174.
Winnipeg ICE Futures Canada dollars per tonne.
Canola Jul 19 445.80s -6.30 -1.39%
Canola Nov 19 456.10s -9.00 -1.94%
Canola Jan 20 463.40s -8.70 -1.84%
Canola Mar 20 469.90s -8.60 -1.80%
Canola May 20 474.80s -8.40 -1.74%
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.
Soybean Jul 19 903-4s -5-4 -0.61%
Soybean Aug 19 908-6s -6-0 -0.66%
Soybean Sep 19 914-4s -6-0 -0.65%
Soybean Nov 19 926-4s -6-2 -0.67%
Soybean Jan 20 938-2s -7-2 -0.77%
Soybean Meal Jul 19 315.7s -1.9 -0.60%
Soybean Meal Aug 19 317.0s -1.9 -0.60%
Soybean Meal Sep 19 318.4s -2.2 -0.69%
Soybean Oil Jul 19 28.00s -0.35 -1.23%
Soybean Oil Aug 19 28.14s -0.34 -1.19%
Soybean Oil Sep 19 28.25s -0.34 -1.19%
Corn Jul 19 447-4s +0-6 +0.17%
Corn Sep 19 453-0s +1-2 +0.28%
Corn Dec 19 457-4s +0-2 +0.05%
Corn Mar 20 462-0s -1-0 -0.22%
Corn May 20 463-0s -2-2 -0.48%
Oats Jul 19 271-4s +1-0 +0.37%
Oats Sep 19 273-0s +0-2 +0.09%
Oats Dec 19 276-0s -0-4 -0.18%
Oats Mar 20 279-0s -1-2 -0.45%
Oats May 20 277-6s -1-6 -0.63%
Wheat Jul 19 535-6s -2-2 -0.42%
Wheat Sep 19 540-0s -2-4 -0.46%
Wheat Dec 19 550-4s -2-0 -0.36%
Wheat Mar 20 560-0s -2-2 -0.40%
Wheat May 20 562-2s -2-0 -0.35%
Spring Wheat Jul 19 548-4s +5-0 +0.92%
Spring Wheat Sep 19 557-0s +3-6 +0.68%
Spring Wheat Dec 19 570-0s +3-0 +0.53%
Spring Wheat Mar 20 583-4s +3-2 +0.56%
Spring Wheat May 20 591-4s +3-2 +0.55%
Hard Red Wheat Jul 19 465-2s -0-2 -0.05%
Hard Red Wheat Sep 19 478-2s +0-6 +0.16%
Hard Red Wheat Dec 19 500-0s +1-0 +0.20%
Hard Red Wheat Mar 20 519-2s +0-2 +0.05%
Hard Red Wheat May 20 531-0s unch unch
Chicago livestock futures in US¢/pound, Pit trade
Live Cattle (Pit) Jun 19 107.750s +0.825 +0.77%
Live Cattle (Pit) Aug 19 103.250s +0.825 +0.81%
Live Cattle (Pit) Oct 19 104.850s +0.825 +0.79%
Feeder Cattle (Pit) Aug 19 131.325s -0.450 -0.34%
Feeder Cattle (Pit) Sep 19 131.875s -0.475 -0.36%
Feeder Cattle (Pit) Oct 19 132.300s -0.300 -0.23%
Lean Hogs (Pit) Jul 19 74.400s +1.550 +2.13%
Lean Hogs (Pit) Aug 19 76.175s +1.950 +2.63%
Lean Hogs (Pit) Oct 19 69.900s +0.850 +1.23%