By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, June 14 – THE ICE Futures Canada canola market finished mixed in choppy trading Tuesday.
Losses in US soy dragged down the July contract and many of the more deferred values, while speculative trade pushed up the most-active November contract and a few other contracts.
Declines in Malaysian palm oil and crude oil were bearish for values.
As spraying wraps up more farmers are beginning to sell their supplies, said a Winnipeg-based trader.
Read Also
North American Grain/Oilseed Review: Canola falls back, wheat rises
Glacier FarmMedia | MarketsFarm — Canola futures on the Intercontinental Exchange retreated further on Tuesday despite entering positive territory for…
“Crusher activity is steady on a scaled down basis,” he added.
Weather conditions in Western Canada have been favourable for the development of canola which has weighed on the market.
However, the Canadian dollar was weaker relative to its US
counterpart, which made canola more attractive to out-of-country
buyers.
Commercial demand was supportive, volumes were good and spreads were a feature.
Around 27,249 canola contracts were traded on Tuesday, which
compares with Monday when around 25,451 contracts changed hands. Spreading accounted for about 12,566 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were mixed on Tuesday, with the nearby July contract settling just above unchanged while the new crop months were down by as much as ten cents per bushel.
Good US crop weather and ideas that planted area may end up above earlier projections accounted for some of the softness in the deferred contracts, according to participants.
The US soybean crop was 92 per cent seeded as of June 12, according to weekly USDA data.
On the other side, solid exports provided underlying support for the front months.
SOYOIL futures held near unchanged at Tuesday’s close.
SOYMEAL futures were mixed on Tuesday, tracking the activity in soybeans.
CORN futures in Chicago were up by two to six cents per bushel on Tuesday, recovering from earlier losses amid ideas that the early selling pressure was overdone.
The US corn crop was rated 75 per cent good-to-excellent in the latest weekly report, which was unchanged from the previous week.
Forecasts calling for hot and dry weather conditions across the Midwest accounted for some of the eventual strength in corn, according to participants. Strong export demand was also supportive.
WHEAT futures in Chicago were down by four to six cents per bushel on Tuesday, as the advancing US winter wheat harvest and strengthening US dollar weighed on prices.
The USDA said the country’s winter wheat harvest was 11 per cent complete as of this past Sunday. While that was off the five-year average of 18 per cent, traders expected farmers would make good progress over the next few weeks.
– Spring wheat in the US was rated 79 per cent good-to-excellent, which was unchanged from the previous week.
– Iran purchased 3.6 million tonnes of wheat from farmers in the country through state-sponsored purchases, according to the country’s agriculture ministry. The purchases were up by 25 per cent compared to the same time period the previous year.
