By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 9 (MarketsFarm) – The ICE Futures canola market was stronger on Tuesday, with the biggest gains in the nearby July contract as speculators covered short positions and rolled out of the front month.
Gains in Chicago Board of Trade soyoil and a weaker tone in the Canadian dollar accounted for some of the strength in the market, according to traders.
Weather concerns in parts of Western Canada were also supportive, as excessive moisture has cut into the production prospects in northern Alberta. Meanwhile, parts of Saskatchewan could soon use more rain.
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…
However, crop conditions remain favourable overall, which tempered the upside. Losses in Chicago soybeans also put some pressure on values.
About 22,427 canola contracts traded on Tuesday, which compares with Monday when 26,546 contracts changed hands. Spreading accounted for 13,546 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were lower on Tuesday, as improving crop condition ratings pressured the market.
The United States soybean crop was 87 per cent seeded as of this past Sunday, according to the latest U.S. Department of Agriculture report. That was up 11 points from the previous week, but still off the 93 per cent average for this time of year.
The crop already in the ground was rated 72 per cent good-to-excellent, marking a two point improvement on the week.
The USDA releases its monthly supply demand report on Thursday, and positioning ahead of the data accounted for some of the activity. Ending stocks forecasts and South American production estimates will be followed closely.
CORN futures were down on the day, also pressured by the good U.S. crop prospects.
U.S. corn seeding was nearing completion, at 97 per cent done in the latest report. Emergence was running slightly ahead of normal overall.
Corn condition ratings improved one point on the week, hitting 75 per cent good-to-excellent.
WHEAT futures were steady to lower, with losses in the winter wheat contracts and a firmer tone in Minneapolis spring wheat.
The winter wheat harvest was reportedly 53 per cent complete in Texas, with the total U.S. harvest pace at 7 per cent done. Winter wheat condition ratings were left unchanged at 51 per cent good to excellent.
Spring wheat in the country was 97 per cent seeded, with emergence at 81 per cent and 82 per cent of the crop in the good-to-excellent category.
