By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, July 10 (CNS Canada) – ICE Futures canola contracts were weaker on Tuesday, with the November contract settling at its lowest level in five months as some stops were hit and speculators added to their growing net short positions.
Ideas that canola was looking expensive compared to other oilseeds contributed to the selling pressure, as the losses in canola came despite a steady to firmer tone in the Chicago Board of Trade soy complex.
A lack of any significant Prairie weather concerns also weighed on prices, although some regions of Western Canada remain too dry, while others deal with excessive moisture.
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About 14,680 canola contracts traded, which compares with Monday when 10,102 contracts changed hands. Spreading accounted for 5,722 of the contracts traded.
SOYBEAN futures held steady at the final bell, after trading to both sides of unchanged in choppy activity.
Condition ratings for the United States soybean crop were left unchanged at 71 per cent good to excellent in the latest weekly report from the U.S. Department of Agriculture. Development was ahead of normal overall, with 47 per cent of the crop in the blooming stage. That compares with 32 per cent last year and the five-year average of 27 per cent.
Uncertainty over Chinese tariffs on U.S. soybeans, and the ongoing trade dispute between the two countries kept some caution in the market.
The USDA’s monthly supply/demand report will be released on Thursday, and pre-report positioning was a feature.
CORN futures were pressured lower by the global trade concerns and relatively favourable growing conditions.
The U.S. corn crop was rated 75 per cent good to excellent in the latest weekly report, down only one point on the week. The corn crop was also developing at a rapid pace, with 37 per cent now in the silk stage. That’s well ahead of the 18 per cent average for this time of year.
WHEAT futures were all lower as seasonal harvest pressure and bearish technical signals weighed on values.
The U.S. winter wheat harvest was 63 per cent complete as of this past Sunday, up two point from the average.
Spring wheat in the U.S. was rated 80 per cent good to excellent by the USDA, an increase of three points on the week. The country’s spring wheat crop is now 81 per cent headed.
Declining production estimates out of Russia were slightly supportive.
