By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, July 20 (MarketsFarm) – The ICE Futures canola market was stronger on Tuesday, taking back some of Monday’s losses.
Gains in the Chicago Board of Trade soy complex provided some spillover support, with Malaysian palm oil and European rapeseed futures also up overnight.
While scattered showers were hitting parts of Western Canada on Tuesday and smoke from wildfires was moderating temperatures, crop conditions remain poor overall with the recent heat and dryness already cutting into yield prospects.
About 25,922 canola contracts traded on Tuesday, which compares with Monday when 21,459 contracts changed hands. Spreading accounted for 18,866 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade soybeans were stronger on Tuesday as the market was due for a correction after Monday’s declines.
The United States soybean crop was rated 60 per cent good to excellent in the latest weekly U.S. Department of Agriculture report. That was up one point from the previous week and in line with expectations.
However, forecasts calling for hot and dry weather across the Midwest over the next week were supportive.
CORN was also underpinned by Midwestern weather concerns.00
The U.S. corn crop was left unchanged at 65 per cent good to excellent, coming in slightly below average trade guesses that had called for a modest improvement in the rating.
Reports of frost in southern Brazil added to the firm tone in corn, with the harvest of the second crop in the country running slightly behind normal.
WHEAT futures were mixed, seeing some adjustments in the spreads between the spring and winter wheats. Minneapolis futures had started the day higher, but ran into resistance to settle with small losses.
U.S spring wheat was only 11 per cent good to excellent in the latest weekly report, down five points from the previous week. An estimated 63 per cent of the crop was described as poor to very poor.
Meanwhile, the U.S. winter wheat harvest was progressing, with 73 per cent of the crop in the bin as of this past Sunday.
Futures Prices as of July 20, 2021
Prices are in Canadian dollars per metric ton