Improving conditions weigh on corn and beans
By Phil Franz-Warkentin, MarketsFarm
Winnipeg, July 16 (MarketsFarm) – The ICE Futures canola market was weaker on Tuesday, but managed to settle above major support.
Improving North American crop conditions accounted for much of the selling pressure, with losses in Chicago Board of Trade soybeans and bearish technical signals contributing to the declines.
However, varied crop development and uncertainty over growing conditions heading through the summer kept some caution in the market, according to participants.
Ideas that canola was looking oversold also provided support, helping the futures settle well off their lows for the day.
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About 14,671 canola contracts traded on Tuesday, which compares with Monday when 8,248 contracts changed hands. Spreading accounted for 5,894 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade posted large losses on Tuesday, as improving production prospects sparked some speculative selling.
The United States soybean crop was rated 54 per cent good-to-excellent in the latest weekly U.S. Department of Agriculture report. That was up one point from the previous week.
Nearby forecasts calling for cooler and wetter conditions across parts of the Midwest were also bearish, as the moderate weather helped ease concerns over heat and dryness that had provided support recently.
However, soybeans remain behind in development with only 22 per cent of the crop blooming as of this past Sunday. That compares with 62 per cent at the same time a year ago.
CORN was pressured lower by the improving U.S. corn prospects and speculative long liquidation.
The U.S. corn crop was rated 58 per cent good-to-excellent in the latest weekly report, which was up one point from the previous week.
However, slow development and ideas that seeded acres will eventually be revised lower remained somewhat supportive.
WHEAT futures were lower, taking some direction from the declines in soybeans and corn.
The U.S. winter wheat harvest was 57 per cent complete as of this past Sunday, which compares with the 71 per cent average for this time of year.
U.S. spring wheat condition ratings declined 2 points from the previous week, to come in at 76 per cent good to excellent.
