By Dave Sims, Commodity News Service Canada
Winnipeg, June 19 (CNS Canada) – Canola contracts on the ICE Futures Canada platform suffered losses Tuesday, following a sharp downturn in U.S. soybeans and soyoil.
Crush margins are hanging near their lowest levels of the year, which was bearish.
Trade turmoil between the United States and China continues to throw a chill over buying on the agricultural markets.
Conditions vary throughout the Prairies but most of Canada’s canola crop is doing fairly well.
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However, the Canadian dollar was weaker relative to its U.S. counterpart, which made canola more attractive to international buyers.
The November contract received support at the psychologically-important C$500 per tonne mark.
About 31,027 canola contracts traded, which compares with Monday when 22,093 contracts changed hands. Spreading accounted for
15,946 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures finished sharply lower Tuesday as trade turmoil between China and the United States continued to spook investors.
The July contract quickly dropped below the technically-important US$9.00 per bushel mark this morning. Once that happened the selling built on itself and many buyers stepped to the sidelines.
According to the USDA, 73 per cent of the U.S. crop is in good to excellent condition, which was down one percentage point from last week.
Corn futures finished slightly lower in technical trade Tuesday.
Heavy rain across the U.S. Corn Belt Monday night aided the crop and put pressure on prices.
According to the USDA, 98 per cent of the U.S. corn crop has emerged.
Chicago wheat futures finished weaker on Tuesday as crop conditions improved for U.S. spring wheat while harvest rolled on for winter wheat crops.
According to the USDA, 27 per cent of the wheat harvest is complete, which is ahead of the five-year average for this time of year of just 19 per cent.
Recent strength in the U.S. dollar pressured the market.
