By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, July 11 (MarketsFarm) – The ICE Futures canola market was mixed at Tuesday’s close, with small gains in the front months and a steady to softer tone in the more deferred positions.
The most-active November contract hit a session high of C$793.50 per tonne but ran into resistance to settle about C$10 off that level.
Advances in Chicago soybeans and European rapeseed futures provided spillover support, although a downturn in soyoil tempered the upside in canola.
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A strike by British Columbia port workers has not yet disrupted grain handling, but container traffic has been affected and traders will be keeping their eyes on the situation.
About 33,757 canola contracts traded on Tuesday, which compares with Monday when 36,384 contracts changed hands. Spreading accounted for 16,724 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, underpinned by ongoing concerns over the state of the United States crop, with positioning ahead of Wednesday’s monthly U.S. Department of Agriculture supply/demand report behind some of the activity.
The U.S. soybean crop was rated 51 per cent good-to-excellent in the latest weekly report, which was up one point from the previous week, but below trade expectations for a more sizeable improvement.
The long-range forecasts remain hot and dry, keeping some weather premium in the market.
With a much smaller acreage base than earlier expectations, Wednesday’s USDA report will also likely include a sizeable cut to U.S. soybean production and stocks.
CORN was also underpinned by pre-report positioning and the dry Midwestern forecast.
U.S. corn production may also be revised lower in tomorrow’s report, despite the increased planted area as yields should be revised lower.
U.S. corn crop conditions improved four points in the good-to-excellent category on the week, now at 55 per cent, but that’s still off last year’s level of 64 per cent.
WHEAT was higher across the board, with the largest gains in Chicago soft wheat.
U.S. spring wheat came in at 47 per cent good-to-excellent in the latest weekly report, which was down one point from the previous week and well off the 70 per cent reported at this time last year.
Meanwhile, the U.S. winter wheat harvest continues to run behind normal at 46 per cent complete, well off the 59 per cent average.
Ongoing tensions in Ukraine remained a feature in the background of the wheat market, with the agreement allowing Ukrainian grain to move through the Black Sea set to expire soon.
