By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market fell to fresh contract lows on Tuesday, as a selloff in the Chicago soy complex and speculators adding to short positions weighed on values.
Expectations for record soybean yields in the United States this year, with weekly U.S. crop condition ratings showing favourable conditions.
Bearish chart signals contributed to the declines in canola, with November hitting the lowest level for the front-month contract in four years.
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Ongoing uncertainty over Western Canadian crop conditions remained somewhat supportive, however any end-user bargain hunting only came forward on a scale-down basis.
There were an estimated 49,102 contracts traded on Tuesday, which compares with Monday when 38,832 contracts traded. Spreading accounted for 28,632 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade fell to fresh contract lows on Tuesday, seeing some follow-through selling after Monday’s bearish production and carryout estimates from the United States Department of Agriculture.
The USDA forecast record large domestic soybean yields in 2024/25, while carryout stocks projections also beat expectations. With relatively favourable growing conditions, many market participants are of the opinion that actual supplies will end up even more burdensome.
Condition ratings for the U.S. soybean crop were left unchanged at 68 per cent good-to-excellent in the latest weekly report, which was well ahead of levels at the same time a year ago.
The USDA announced private export sales of 132,000 tonnes of soybeans to China this morning.
CORN was also pressured by large crop projections and the good U.S. growing conditions.
The USDA forecast corn yields at the record large level of 183.1 bushels per acre, although an expected cut to harvested area would limit total production from hitting a new record.
U.S. corn condition ratings held steady at 67 per cent good-to-excellent in the latest weekly report.
Flash sales of 137,600 tonnes of corn to Mexico announced this morning provided some support.
WHEAT was mixed, with gains in Minneapolis spring wheat and a steady to softer tone in the winter wheats.
The U.S. winter wheat harvest was 93 per cent complete as of this past Sunday, up five points from the previous week and slightly ahead of average.
Condition ratings for U.S. spring wheat dipped slightly on the week, losing two points in the good-to-excellent category – now at 72 per cent. The U.S. spring wheat harvest was 18 per cent complete as of this past Sunday.
