By Marlo Glass, MarketsFarm
WINNIPEG, Sept. 10 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were steady to weaker on Tuesday, pressured by harvest development and a strong Canadian dollar.
The Canadian dollar remained just over 76 U.S. cents, riding the coattails from last week’s rally and keeping a lid on values.
As harvest continues, prices may go lower, due to large carryover stocks from 2018.
A Winnipeg-based trader said technical biases are trending lower. If prices break below C$437, that could result in additional technical selling.
There were 17,354 contracts traded on Tuesday, which compares with Monday when 12,052 contracts changed hands. Spreading accounted for 9,904 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Tuesday, bouncing back from muted activity on Monday.
Soybean crop development remains behind schedule according to the United States Department of Agriculture. Approximately 92 per cent of the soybean crop is setting pods, down from the four-year average of 99 per cent.
Soybean crop conditions remained at 55 per cent good to excellent, though that’s down from last year’s rating of 68 per cent.
This morning, the USDA reported an export sale of 138,000 tonnes of new crop soybeans for delivery to Mexico. Additionally, 195,750 metric tonnes of soybean cake and meal were sold to Mexico as well.
CORN futures were stronger on Tuesday, following reports of degrading crop conditions. The corn crop is rated at 55 per cent good to excellent, down three per cent from the previous week. That rating is also down considerably from last year, when 68 per cent of the crop was good to excellent.
A sale of 278,200 tonnes of new crop corn was made by Mexico this morning.
Corn crop development continues to lag behind schedule. About 89 per cent of the crop is in the dough stage, down from the four-year average of 97 per cent. Corn in the dented stage is around 55 per cent, down from the 77 per cent four-year average.
WHEAT futures were higher on Tuesday, as rain in the Northern Plains region of the U.S. has delayed the spring wheat harvest. Further delays could possibly impact quality.
The spring wheat harvest is about 70 per cent complete, lagging behind the four-year average of 87 per cent.
Wheat prices are under pressure due to burgeoning global wheat stocks. Recent data showed large export totals from Ukraine and Russia last month. Also, the French Farm Ministry recently raised the country’s wheat production estimates for 2019-2020 to 39.45 million tonnes. However, Australia’s wheat crop may be threatened by a drought.