By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 21 (MarketsFarm) – The ICE Futures canola market was mostly stronger at Wednesday’s close after trading to both sides of unchanged in choppy activity. Only the old crop July contract was lower at the final bell, with intermonth spreading a feature of the activity as traders exited the front month.
Limit-down losses in Chicago soyoil futures accounted for some spillover selling pressure in canola, as soyoil reacted to lower-than-expected biofuel blending requirements announced by the United States Environmental Protection Agency.
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European rapeseed and Malaysian palm oil futures were also softer, although a rally in Chicago soybeans provided support. Declining crop ratings for the U.S. soybean crop were behind the strength there.
Some areas of Western Canada could also use more moisture, although a trader noted that the canola crop was in decent shape overall with most regions receiving precipitation over the past week.
About 48,810 canola contracts traded on Wednesday, which compares with Tuesday when 44,012 contracts changed hands. Spreading accounted for 33,394 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Wednesday, underpinned by declining crop ratings and mounting weather concerns.
The United States soybean crop was placed at 54 per cent good-to-excellent in the latest weekly report, which was down five points from the previous week and the lowest rating for this time of year since 2018.
Forecasts do call for rains in the more western soybean growing regions of the country, although the eastern Corn Belt is expected to remain hot and dry.
While soybeans and soymeal were both higher on the day, sharp limit-down losses in soyoil did put some pressure on the market, causing crush margins to slip.
CORN was also boosted by disappointing crop ratings and dry weather forecasts.
The U.S. corn crop was rated 55 per cent good-to-excellent, down six points on the week and the lowest level for this time in 35 years.
Weekly U.S. corn export inspections came in below one million tonnes for the first time in 10 weeks, according to a report out yesterday, putting some pressure on values.
WHEAT followed soybeans and corn higher.
Winter wheat condition ratings were left unchanged at 38 per cent good-to-excellent, while spring wheat fell nine points to 51 per cent.
The U.S. winter wheat harvest advanced to 15 per cent complete, which was five points off the average as rains cause delays in the southern states.
Declining production estimates out of Russia were also supportive, with SovEcon lowering their forecast for the country’s wheat crop to 86.8 million tonnes, from an earlier forecast of 88.0 million, citing hot and dry weather cutting into moisture reserves over the past month.
