By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 2 (MarketsFarm) – The ICE Futures canola market was weaker on Wednesday, as improving yield prospects and a lack of significant end user demand weighed on values.
Losses in Chicago soybeans also accounted for some spillover pressure in the Canadian oilseed, although soyoil was mixed and European rapeseed futures were stronger.
While some areas of the Prairies remain on the dry side, many regions have received moisture over the past week and concerns over the state of the canola crop have eased. Manitoba said most of the canola in the province was in good condition in its latest weekly report.
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A softer tone in the Canadian dollar provided some underlying support.
About 24,967 canola contracts traded on Wednesday, which compares with Tuesday when 36,745 contracts changed hands. Spreading accounted for 13,256 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Wednesday, as improving Midwestern weather forecasts weighed on values and more than countered the overnight strength brought on by the conflict in Ukraine.
A Russian attack on Ukrainian grain handling facilities on the Danube River initially underpinned the grains and oilseeds, but any support from the ongoing conflict subsided as the North American session progressed.
Forecasts calling for cooler and wetter conditions across much of the United States soybean growing regions were bearish. While condition ratings deteriorated in the latest weekly report, traders expect they will stabilize or show some improvement going forward.
Rising production estimates out of Brazil also weighed on prices.
U.S. processors crushed 174.5 million bushels of soybeans in June, which was below average trade guesses.
CORN was also pressured by the better Corn Belt weather, with chart-based positioning contributing to the declines.
An estimated 441.5 million bushels of corn was used for ethanol production in the U.S. in June, which was slightly above average trade guesses but below what was used the same month a year ago.
WHEAT was down in all three contracts, with the largest losses in the winter wheats. While the Russian attacks on Ukrainian grain facilities provided some overnight support, wheat is still moving from the region for the time being.
U.S. wheat is also thought to be overpriced compared to other origins.
