By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, June 26 (CNS Canada) – ICE Futures Canada canola contracts were weaker at Tuesday’s close, retreating from earlier gains as losses in Chicago Board of Trade soybeans spilled over to weigh on values.
Statistics Canada and the United States Department of Agriculture both release acreage estimates on Friday, and positioning ahead of the reports accounted for some of the activity. Canadian canola acres are generally expected to be up from earlier estimates.
Global trade issues kept some caution in the background of the agricultural markets, according to participants.
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While growing conditions are generally favourable across Western Canada, continued heat and dryness in a number of areas provided underlying support.
About 25,570 canola contracts traded, which compares with Monday when 27,012 contracts changed hands. Spreading was a feature, accounting for 21,354 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were lower on Tuesday, as the ongoing trade war between the United States and China continues to show no signs of abating. Chinese tariffs on U.S. soybeans are set to go into effect next week.
Relatively favourable Midwestern crop conditions also weighed on prices, although excessive rainfall was starting to cause concerns in some areas.
Overall condition ratings for U.S. soybeans were unchanged on the week at 73 per cent good to excellent, according to a report from the U.S. Department of Agriculture, with the crop looking its best for this time of year in 29 years.
CORN futures held steady on the day, seeing some consolidation after hitting fresh lows yesterday. The USDA releases updated acreage and stocks data on Friday, and positioning ahead of the reports was a feature.
The U.S. corn crop saw a slight decline in the good-to-excellent ratings in the latest weekly report. However, with 77 per cent in the top two categories, the crop would still be the fourth best on record for this time of year.
WHEAT futures were lower, with the largest losses in the hard red Kansas City winter wheat futures. The advancing U.S. winter wheat harvest accounted for some of today’s selling pressure, with 41 per cent of the crop in the bin as of this past Sunday.
Winter wheat condition ratings did decline two points, to 37 per cent good to excellent, which provided some support.
The U.S. spring wheat crop was rated 77 per cent good-to-excellent. That was down one point on the week, but well ahead of the 40 per cent reported at this time last year.
