By Phil Franz-Warkentin and Dave Sims, Commodity News Service Canada
Winnipeg, June 20 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Tuesday, falling off their nearby highs as losses in Chicago soybeans and soyoil spilled over to weigh on prices.
A slight improvement in the weekly US soybean condition ratings provided the catalyst for the downturn, with losses in crude oil and rumours of possible changes to the US biofuels policy also weighing on the oilseeds in general, according to a broker.
However, uncertain Canadian production prospects helped limit the losses in canola, as some areas of the Prairies remain too wet and others are in need of moisture, said traders.
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Weakness in the Canadian dollar, which was down by about a quarter cent relative to its US counterpart, also provided some support.
About 21,950 canola contracts traded on Tuesday, which compares with Monday when 22,465 contracts changed hands. Spreading accounted for 13,480 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although wheat prices were revised after the close.
CORN futures in Chicago fell five to six cents on Tuesday as a selloff in crude oil provided the path of least resistance.
Favourable weather forecasts in the US Midwest also pressured prices.
According to the USDA, 98 percent of the US corn crop has emerged, which is roughly the same as the five-year average.
SOYBEAN futures at the Chicago Board of Trade ended eight to 10 cents per bushel lower due to improving weather forecasts. Rain is expected in the Midwest later this week.
The selling intensified after the November contract dipped below the 50-day moving average.
The US soybean crop is 89 percent emerged, which compares to the five-year average of 84 percent.
SOYOIL futures ended roughly 80 points lower on Tuesday.
SOYMEAL futures also finished weaker.
WHEAT futures in Chicago finished four to five cents higher on Tuesday, as growing concerns about the poor quality of the crop pointed the way higher.
According to the USDA, just 41 percent of the crop is in good to excellent condition.
Cooler weather is expected to arrive in the US corn-belt later this week and should help the crop, according to analysts.
