WINNIPEG, Sept. 12 (MarketsFarm) – The ICE Futures canola market was weaker on Tuesday, falling below major chart support.
Canola has been in a steady downtrend for over a week, with Tuesday’s move below C$760 per tonne in the November contract encouraging additional speculative selling.
A bearish reaction in the Chicago soy complex to updated supply/demand estimates from the United States Department of Agriculture contributed to the selling pressure in canola, with European rapeseed and Malaysian palm oil also weaker.
Seasonal harvest pressure also weighed on values, amid relatively favourable Prairie weather forecasts.
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Statistics Canada releases updated production estimates on Thursday.
About 43,951 canola contracts traded on Tuesday, which compares with Monday when 42,898 contracts changed hands. Spreading accounted for 27,064 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Thursday, as the market reacted to the United States Department of Agriculture’s monthly supply/demand estimates.
Average U.S. soybean yields were pegged at 50.1 bushels per acre, which was down from 50.9 in August but in line with pre-report expectations. Total production of 4.146 billion bushels was down by 59 million bushels from the August estimate but above average trade estimates as the USDA raised its seeded area number.
U.S. soybean condition ratings were down one point on the week, coming in at 52 per cent good-to-excellent, which would be the lowest rating for this time of year in a decade.
CORN futures were weaker, as U.S. production was up from August
Average U.S. corn yields were pegged at 173.8 bushels per acre by the USDA, down by 1.3 from August. However, total production was raised by 23 million bushels, to a record 15.134 billion bushels, as planted area was revised higher by 774,000 acres.
Meanwhile, weekly U.S. corn condition ratings were their lowest since 2012 for this time of year, at 52 per cent good to excellent.
WHEAT was higher across the board, correcting off nearby lows as a larger than expected cut to world supplies provided support.
There were no major changes to the domestic wheat numbers in today’s report, with total U.S. production left unchanged at 1.734 billion bushels and carryout at 615 million bushels. World wheat carryout was dropped by seven million tonnes, now at 258.6 million tonnes, due primarily to production losses in Australia, Canada, Argentina and the European Union.
The U.S. spring wheat harvest was 87 per cent complete as of this past Sunday, which was in line with the average, with seven per cent of winter wheat acres in the ground.
