By Phil Franz-Warkentin, MarketsFarm
Winnipeg, Aug. 27 (MarketsFarm) – The ICE Futures canola market was weaker on Tuesday, breaking below nearby chart support. Seasonal harvest pressure and losses in Chicago soybeans contributed to the declines.
A move below C$448 per tonne in the November contract was bearish from a chart standpoint, which encouraged some additional speculative selling, according to a trader.
Better-than-expected yield reports as the harvest picks up across the Prairies also weighed on values. However, recent rainfall will cause delays in some areas.
Read Also
North American Grain and Oilseed Review: Canola clings to small upticks
By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed a pinch higher on Friday, after…
Statistics Canada releases its first survey-based production estimates of the crop year on Wednesday, Aug. 28. Pre-report trade guesses range anywhere from 18.0 million to 20.5 million tonnes, which compares with the 20.3 million tonne crop grown in 2018/19.
About 10,852 canola contracts traded on Tuesday, which compares with Monday when 13,148 contracts changed hands. Spreading accounted for 5,182 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, as crop conditions across the Midwest showed some improvement.
The United States soybean crop was rated 55 per cent good to excellent in the latest weekly U.S. Department of Agriculture crop report, which was up 2 points from the previous week.
Ongoing uncertainty over trade talks between the U.S. and China also kept some caution in the market, with no real concrete news on that front.
CORN was also pressured lower by improving crop conditions. The U.S. corn crop was rated 57 per cent good to excellent as of this past Sunday, which was up one point on the week.
However, development remains behind normal, with 71 per cent in the dough stage. That compares with the 87 per cent average for this time of year.
WHEAT futures were mostly higher on Tuesday, seeing a correction after recent losses. However, Minneapolis spring wheat lagged to the upside.
The U.S. spring wheat harvest was 38 per cent complete as of this past Sunday. That beat average expectations around 29 per cent, but was still behind the 65 per cent average for late August.
Spring wheat condition ratings were lowered slightly, to 69 per cent good to excellent.
