By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, July 24 (CNS Canada) – ICE Futures canola contracts were stronger on Tuesday, finding some spillover support from a rally in Chicago Board of Trade soybeans and soyoil.
The gains in the Chicago market were said to be tied to reports that the White House was set to announce a US$12 billion aid program for farmers to help offset some of the negative impacts of the trade war with China.
Persistent weather worries in parts of Western Canada were also supportive for canola, with many dry areas missing out on the latest rainfall.
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However, North American crop conditions remain relatively favourable overall. Ideas that canola looks expensive compared to other oilseeds also tempered the upside.
About 12,015 canola contracts traded, which compares with Monday when 15,668 contracts changed hands. Spreading accounted for 3,792 of the contracts traded.
SOYBEAN futures were weaker overnight, but managed to climb higher and post solid gains as talk circulated in the market that the White House was set to implement an aid program to assist farmers to the tune of US$12 billion. The money is to help offset the negative impact of Chinese tariffs.
The U.S. soybean crop was rated 70 per cent good to excellent in the latest weekly U.S. Department of Agriculture report, which was up one point from last week. Forty per cent of pods were setting, which compares with the normal for this time of year of 23 per cent.
CORN futures were lower on the day, as Midwestern crop conditions remain favourable for crop development.
The U.S. corn crop was left unchanged at 72 per cent good to excellent in the latest weekly report, with development running well ahead of normal.
Rising production estimates out of Ukraine also put some pressure on corn prices.
WHEAT prices were mixed, although the bias was lower at the close.
The U.S. winter wheat crop is now 80 per cent harvested, according to the USDA, which was up six points from last week.
Spring wheat in the country was rated 79 per cent good to excellent. While that was down one point on the week, the crop is still looking the best it has at this time of year since 2010.
