By Phil Franz-Warkentin and Erin DeBooy Commodity News Service Canada
Winnipeg, July 5 (CNS Canada) – ICE Futures Canada canola contracts were down on Tuesday, as a fund sell-off in the Chicago Board of Trade soy complex spilled over to weigh on the market.
Speculators liquidating long positions were behind much of the selling pressure in canola, according to participants. Relatively favourable crop conditions across most of North America added to the softer tone.
However, canola is still cheap compared to other oilseeds, and lagged the soy complex to the downside.
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A weaker tone in the Canadian dollar, which was down by roughly three-quarters of a cent relative to its US counterpart, was also somewhat supportive.
About 17,696 canola contracts were traded on Tuesday, which compares with Monday when 5,239 contracts changed hands.
Milling wheat, durum, and barley futures were all untraded, although durum prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed weaker on Tuesday, as concerns arose about the broader economy and poor performance in the grain market.
Speculative fund traders were liquidating long positions, accounting for much of the selling pressure.
Good US crop weather was also bearish.
Strong demand for US soybeans and soybean meal, and ideas that China will buy more in the months going forward, provided some support.
Some analysts think the USDA estimated demand for export and domestic consumption too low, as the export pace for the current year is already at or above USDA projections.
SOYOIL prices closed weaker on Tuesday.
SOYMEAL closed weaker on Tuesday, posting limit down losses.
CORN futures closed weaker on Tuesday, as new contract lows were established in the corn pit and traders exited long positions.
Forecasts show crops in drier areas will be getting much needed rain this week, while other areas already received some beneficial moisture, improving crop conditions.
RICE futures closed lower on Tuesday.
WHEAT closed stronger on Tuesday as oversold conditions were revealed.
Rains throughout the southern US plains held up harvesting, supporting the price.
Production and quality concerns in other wheat growing regions of the world, including Russia and Europe, were also supportive.
However, sharp declines in soybeans and corn put some pressure on wheat, limiting the gains.
-Wheat harvest are 88 per cent complete in Texas, 97 per cent complete in Oklahoma and 81 per cent complete in Kansas. Rain has delayed harvesting in parts of eastern Colorado, Nebraska and South Dakota.
