By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sep. 1 (MarketsFarm) – The ICE Futures canola market settled with solid gains on Tuesday, moving above nearby chart resistance.
Monday’s smaller than expected production estimate from Statistics Canada remained somewhat supportive, with recent cold weather in parts of the Prairies and the chance of frost lessening expectations for future upward revisions from the government agency.
A firmer tone in Chicago Board of Trade soybeans and soyoil, along with slight weakness in the Canadian dollar, was also supportive.
About 30,359 canola contracts traded on Tuesday, which compares with Monday when 22,581 contracts changed hands. Spreading accounted for 21,724 of the contracts traded.
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SOYBEAN futures at the Chicago Board of Trade held onto small gains on Tuesday, seeing some follow-through buying interest after yesterday’s advances.
The United States soybean crop was rated 66 per cent good to excellent in the latest weekly U.S. Department of Agriculture report, which was down three points from the previous week.
The USDA announced a private export sale of 132,000 tonnes of new crop beans to unknown destinations this morning.
CORN futures were also supported by declining condition ratings, although prices held close to unchanged.
Corn dipped two points in quality ratings, with 62 per cent of the U.S. crop now rated good-to-excellent
Development was generally ahead of normal, with 94 per cernt of the crop in the dough stage.
WHEAT futures posted solid gains, with broad weakness in the U.S. dollar index accounting for some of the buying interest.
The U.S. spring wheat crop was 69 per cent harvested as of this past Sunday, which was ahead of last year’s slow pace, but still slightly behind the 77 per cent average for this time of year.
Production estimates out of Europe pegged the French wheat crop at 29.5 million tonnes, with Germany at 21.9 million.
