By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Aug. 14 (CNS Canada) – ICE Futures canola contracts were stronger on Tuesday, as gains in Chicago Board of Trade soybeans encouraged some spillover speculative buying interest.
Argentina announced it was suspending a program of cutting export taxes on soybeans and soy products, which was bullish for North American oilseed prices, according to a trader.
The recent heat across the Prairies also provided underlying support for canola, as traders try to get a better handle on the extent of the yield reductions and damage caused by the hot temperatures.
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However, the Canadian dollar strengthened, which put some pressure on canola. Losses in Chicago soyoil also weighed on values.
About 10,548 canola contracts traded, which compares with Monday when 9,874 contracts changed hands. Spreading accounted for 3,694 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were higher on Tuesday, as a move by Argentina to halt a policy of easing export tariffs on soybeans and soy products provided support.
A slight decline in the condition ratings of the U.S. soybean crop in the latest weekly report, to 66 per cent good to excellent, was also supportive. Although, the one point decline was generally expected.
Reports that farmers in Brazil were planting more soybeans at the expense of sugarcane and other crops put some pressure on values.
CORN futures found some spillover support from the advances in soybeans.
The U.S. corn crop was rated 70 per cent good to excellent in the latest weekly report, which was down one point from the previous week.
Crop development was running well ahead of normal in most states, with 26 per cent already dented. That’s double the 13 per cent average for this time of year.
WHEAT futures were higher, with the biggest gains in Chicago and Kansas City winter wheats.
The U.S. winter wheat harvest is nearing completion, with 96 per cent in the bin as of this past Sunday.
Spring wheat was 35 per cent harvested in the U.S., which compares with the normal pace of 27 per cent.
Condition ratings for the U.S. spring wheat crop improved slightly on the week, rising one point in the good-to-excellent category to 65 per cent.
