By Phil Franz-Warkentin, MarketsFarm

WINNIPEG, Aug. 11 (MarketsFarm) – The ICE Futures canola market was weaker on Tuesday, falling to its lowest levels in two weeks as traders took profits and the market continued to back away from recent highs.

A firmer tone in the Canadian dollar, which was up by nearly half a cent, contributed to the weakness in canola. Losses in Chicago Board of Trade soyoil also pressured values, cutting into crush margins.

The looming Prairie harvest and relatively favourable crop prospects also weighed on prices.

The United States Department of Agriculture releases updated production estimates on Wednesday, and pre-report positioning was a feature in the North American grains and oilseeds.

About 17,213 canola contracts traded on Tuesday, which compares with Monday when 14,473 contracts changed hands. Spreading accounted for 7,320 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade held onto small gains in the most active contracts on Tuesday, with positioning ahead of Wednesday’s production and supply/demand reports from the United States Department of Agriculture a feature.

General expectations are for an increase in U.S. soybean production compared to earlier estimates, although that larger crop may be priced into the market for the time being.

The extent of the damage caused by the derecho wind storm that hit large parts of the Midwest on Monday was still be assessed, with crop losses likely in some areas as soybean and corn fields were flattened by 100mph hour winds.

Weekly U.S. crop condition ratings pegged the soybean crop at 74 per cent good-to-excellent, which was up one point on the week.

The USDA reported private export sales of 132,000 tonnes of soybeans to China this morning

CORN futures were also posting small gains as traders adjusted positions ahead of Wednesday’s USDA reports.

U.S. corn crop condition ratings dropped slightly on the week – losing one point in the good-to-excellent category, at 71 per cent. However, that’s still well above the year ago level at this time.

WHEAT futures were higher on Tuesday, seeing a modest recovery after recent losses

The U.S. winter wheat harvest was 90 per cent complete as of this past Sunday, which was slightly ahead of the five-year average of 84 per cent done.

Spring wheat was 15 per cent harvested, which was 10 points off the average.

Spring wheat condition ratings for the crop still in the field fell four points on the week to come in at 69 per cent good-to-excellent.

Rising production estimates out of Russia put some pressure on wheat prices.