By Jade Markus and Dave Sims, Commodity News Service Canada
Winnipeg, June 21 (CNS Canada) – ICE Futures Canada canola contracts ended lower on Tuesday, pressured by traders leaving positions.
Traders started liquidating their positions as favorable crop conditions in Western Canada curbed speculative buying.
Some areas are too wet, analysts say, but overall, crop conditions are currently better than in previous years.
Malaysian palm oil and Chicago Board of Trade soybeans closed lower, which caused spillover pressure.
Canola’s technical bias is to the downside, market watchers say, which added to the declines.
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About 44,460 canola contracts traded on Tuesday, which
compares with Monday when 34,174 contracts changed hands. Spreading accounted for about 18,622 of the contracts traded.
Milling wheat, durum and barley futures were all untraded and unchanged.
Corn futures plummeted Tuesday due to fund liquidation as large commercials exited their long positions. Contracts on the Chicago Board of Trade generally dropped 22 to 25 cents per bushel.
Rain in the US Midwest has calmed many fears that the corn crop will be drought-stressed.
Brazil is sending a shipment of corn to the US, which was bearish for US values.
SOYBEAN futures trended lower Tuesday due to spillover losses in corn.
The market also felt pressure from ideas it was slightly overbought.
Weather reports for the US Midwest are calling for rain this week which should alleviate concerns over excess dryness.
Soyoil fell 28 points lower following losses in crude oil
SOYMEAL futures dropped in sympathy with corn.
Wheat futures on the Chicago Board of Trade suffered losses of 10 to 23 cents per bushel on the day following weakness in corn.
The winter wheat harvest has been progressing quicker-than-normal which was bearish while rains across the Midwest this week are expected to help wheat fields.
However, the weekly USDA crop report showed spring wheat ratings had declined 3% to 76% good to excellent, which was supportive for prices.
Wheat futures on the Chicago Board of Trade were down 14 to 15 cents per bushel on the day following weakness in corn.
The winter wheat harvest has been progressing quicker-than-normal which was bearish while rains across the Midwest this week are expected to help wheat fields.
However, the weekly USDA crop report showed spring wheat ratings had declined 3% to 76% good to excellent, which was supportive for prices.
– Chinese wheat could face significant damage due to unrelenting rain in the country. According to reports out of the country, some of the country’s crop could be lowered to feed-quality status if conditions don’t improve.
– Indonesia is moving ahead with plans to import 10 million tonnes of wheat in 2016, according to an official with the Association of Flour Producers in Indonesia. If that holds, it would be the largest amount they’ve ever brought into the country in a single season.
