By Phil Franz-Warkentin, MarketsFarm
Winnipeg, July 2 (MarketsFarm) – The ICE Futures canola market was weaker on Tuesday, as chart-based selling and spillover from the losses in Chicago Board of Trade soybeans weighed on values.
Soybeans were down on Monday, when the canola market was closed for Canada Day, and remained pointed lower today.
Speculators adding to their net short positions accounted for much of the selling pressure, as the futures tested major technical support levels.
Improving moisture conditions in parts of Western Canada added to the softer tone in canola.
Read Also
North American Grain and Oilseed Review: Canola stronger on comparable oils
By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were stronger on Thursday, in gleaning support…
However, many areas missed out on the precipitation, and more rain will be needed going forward.
About 13,951 canola contracts traded on Tuesday, which compares with Friday when 16,133 contracts changed hands. Spreading accounted for 3,352 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, seeing some follow-through selling after Monday’s downturn.
The United States soybean crop was 92 per cent seeded as of this past Sunday, which compares with the average of 99 per cent done for this time of year.
Condition ratings were left unchanged at 54 per cent good-to-excellent. That’s well below the 71 per cent at this time last year.
Friday’s smaller-than-expected acreage estimate from the U.S. Department of Agriculture remained somewhat supportive.
CORN futures posted small gains, seeing a modest correction after yesterday’s losses.
Condition ratings for the U.S. corn crop were left unchanged at 56 per cent good-to-excellent, with declines in some states offset by gains elsewhere. The stable reading provided some support as traders had expected to see an overall improvement on the week.
The USDA’s monthly grain crushing report showed that 459.6 million bushels of corn were used for ethanol production in May.
While that was down slightly from the same month a year go – it was up 4.4 per cent from April.
WHEAT futures were lower, as chart-based speculative selling weighed on values.
The U.S. winter wheat harvest continues to run behind normal – at 30 per cent complete, according to the latest weekly USDA report.
Winter wheat condition ratings improved two points, hitting 63 per cent good-to-excellent.
Spring wheat in the country is in relatively decent shape, with 75 percent in the good-to-excellent category.
