By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, July 25 (CNS Canada) – ICE Futures Canada canola contracts were down on Tuesday, seeing some follow-through speculative selling after Monday’s break below nearby support.
Losses in Chicago Board of Trade soybeans, continued strength in the Canadian dollar, and improving crop conditions in parts of the Prairies contributed to the declines.
However, there are still more than enough areas of concern across Western Canada and the underlying fundamentals remain relatively supportive for canola, according to a broker. Tight old crop supplies and the need to ration some demand also helped temper the declines.
Read Also
ICE Canola Midday: Futures turn positive
By Glen Hallick Glacier FarmMedia | MarketsFarm – Intercontinental Exchange canola futures were attempting to recover from earlier losses on…
About 18,923 canola contracts traded on Tuesday, which compares with Monday when 18,785 contracts changed hands. Spreading accounted for 2,832 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade were down 15 to 17 cents per bushel on Tuesday, largely ignoring declining weekly crop ratings, as speculative selling weighed on prices.
US soybeans rated good-to-excellent dropped four points in the latest weekly USDA report, with only 57 per cent of the crop now in the top two categories.
While the declining ratings were supportive, any gains were short-lived as the nearby Midwestern forecasts look favourable for crop development.
Large old crop supplies and big South American crops also continue to overhang soybeans, according to participants.
SOYOIL futures were lower on Tuesday.
SOYMEAL futures settled lower on Tuesday.
CORN futures in Chicago were down six to eight cents per bushel on Tuesday.
US corn was rated 62 per cent good-to-excellent in the latest weekly USDA report, which was down two points on the week.
While the decline was larger than expected, the better weather forecasts this week were enough to counter that bullish report and corn moved lower.
Losses in wheat also accounted for some spillover selling.
WHEAT futures in Chicago were down by 11 to 15 cents per bushel, while Minneapolis spring wheat was down by as much as 15 cents.
Spring wheat crop ratings were down once again in the US, with only 33 per cent of the crop now rated good-to-excellent.
However, the forecasts are showing some improvement and the resulting speculative selling in Minneapolis spilled into the winter wheat contracts as well.
US winter wheat was 84 percent harvested in the latest USDA report, which is up slightly from the 80 per cent average for this time of year.
