By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 8 (MarketsFarm) – The ICE Futures canola market was mostly lower on Tuesday as activity resumed after the August long weekend.
Soybean and soyoil futures in Chicago were down sharply on Monday when Canadian markets were closed for civic holidays, with much of Tuesday’s selling pressure in canola tied to the need for the Canadian oilseed to rebalance itself with the United States futures.
Relatively favourable Prairie weather conditions also weighed on values.
However, a turn higher in soybeans provided some spillover support for canola. A weaker tone in the Canadian dollar was also supportive.
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About 32,573 canola contracts traded on Tuesday, which compares with Friday when 19,427 contracts changed hands. Spreading accounted for 17,568 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, recovering from earlier losses. Relatively favourable Midwestern weather conditions had weighed heavily on soybean futures on Monday, with improving condition ratings also bearish. However, support was uncovered to the downside.
The United States soybean crop improved two points in the good-to-excellent category, now at 54 per cent, according to the weekly U.S. Department of Agriculture report. An estimated 90 per cent of the country’s soybean crop was blooming, up seven points from the previous week, with 66 per cent setting pods.
Positioning ahead of Friday’s monthly USDA supply/demand report was a feature, with average pre=report forecasts calling for a slight cut to U.S. soybean production from earlier estimates.
CORN settled with small gains in ‘turnaround Tuesday’ activity after Monday’s losses.
U.S. corn production is also expected to be revised lower in Friday’s report.
The U.S. corn crop was rated 57 per cent good to excellent in the latest weekly report, improving two points on the week. Development was running slightly ahead of average, with 93 per cent in the silking stage.
WHEAT was mixed, with gains in spring wheat while the winter wheats held closer to unchanged.
U.S. spring wheat was rated 41 per cent good-to-excellent, down one point from the previous week. An estimated 20 per cent of the crop was in the poor-to-very-poor category, which was up by four points. The harvest was moving ahead, at 11 per cent complete.
The U.S. winter wheat harvest was 87 per cent done, up seven points on the week.
