By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 24 (MarketsFarm) – The ICE Futures canola market was stronger on Tuesday, as a rally in the Chicago Board of Trade soy complex provided some spillover support.
Ongoing uncertainty over the size of Canada’s canola crop added to the firmer tone, as drought during the growing season has been followed by harvest-delaying rains.
Statistics Canada releases its first survey-based production estimates of the year on Monday, Aug. 30, with expectations for a sizeable reduction on the year. Some industry participants have pegged the crop as small as 12 million tonnes, which would be well off the 18.7 million grown last year.
Read Also
North American Grain and Oilseed Review: Canola clings to small upticks
By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed a pinch higher on Friday, after…
Canola lagged the soy complex to the upside, as recent strength in the Canadian dollar put some pressure on values. Soft crush margins were another bearish influence, indicating that canola may be overpriced compared to the product values.
About 17,865 canola contracts traded on Tuesday, which compares with Monday when 14,943 contracts changed hands. Spreading accounted for 9,322 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, boosted by declining crop condition ratings.
The United States soybean crop was rated 56 per cent good-to-excellent in the latest weekly U.S. Department of Agriculture report, which was down one point on the week.
Chart-based speculative buying added to the gains in beans, with some stops hit on the way up.
The USDA reported private export sales of 132,000 tonnes of soybeans to China this morning.
CORN was also underpinned by declining condition ratings, with the good-to-excellent rating for the crop down two points on the week, at 60 per cent.
The USDA reported private export sales of 125,300 tonnes of corn to Mexico this morning, adding to the firmer tone.
However, forecasts calling for beneficial rain across the Corn Belt over the next week kept a lid on the upside, as the moisture should help crop development.
WHEAT was mixed, with gains in Minneapolis spring wheat and losses in the winter wheat futures.
The U.S. spring wheat harvest was 77 per cent complete as of this past Sunday, which was well ahead of the average of 55 per cent done for this time of year.
Rains in the Dakotas and Canada should cause harvest delays over the next week, providing some support for the futures. Declining production estimates for North American spring wheat also underpinned the futures ahead of next week’s Statistics Canada production report.
