By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 31 (MarketsFarm) – The ICE Futures canola market settled with small losses on Monday, retreating from early gains as investors digested production estimates from Statistics Canada.
Statistics Canada pegged the 2020/21 Canadian canola crop at 19.4 million tonnes in a report out this morning, which was at the lower end of trade estimates. While the headline number was slightly supportive, the 2019/20 crop was revised higher, offsetting the smaller projection for this year to some extent.
Concerns over cool overnight temperatures in parts of Western Canada, and the possibility of frost, provided support. Gains in Chicago Board of Trade soybeans also helped underpin the Canadian oilseed, although beans were off their highs and soyoil moved lower.
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Recent strength in the Canadian dollar and seasonal harvest pressure also weighed on values.
About 22,581 canola contracts traded on Monday, which compares with Friday when 27,420 contracts changed hands. Spreading accounted for 12,380 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Monday, although off their session highs after running into resistance.
Concerns that hot and dry Midwestern weather was cutting into yield prospects accounted for some of the buying interest, with condition ratings expected to decline in the latest weekly United States Department of Agriculture report.
Canada’s soybean crop was pegged at 5.96 million tonnes by Statistics Canada, which would be down 1.4 per cent from the previous year, as a decline in acres was not fully countered by an increase in expected yields.
CORN futures were also supported by Midwestern weather concerns, although prices turned mixed by the close.
The USDA announced a private export sale of 596,000 tonnes of corn to China this morning, providing some support.
Canada’s corn crop was pegged at 13.9 million tonnes by Statistics Canada. That was at the lower end of trade estimates, but still up 3.9 per cent on the year.
WHEAT futures were steady to higher on Monday, with gains in the winter wheats and a steady tone in Minneapolis spring wheat. Chart-based positioning was a feature, as the wheat futures reacted to activity in soybeans and corn.
Canada’s wheat crop was forecast at 35.7 million tonnes, which would be the second largest on record. Of that total, durum at 6.9 million tonnes would be up by nearly two million tonnes on the year.
