By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, June 28 (CNS Canada) – ICE Futures Canada canola contracts were up on Tuesday, as oversold price sentiment had prices correcting off of their nearby lows for the second straight day. However, prices were well off their session highs by the close.
Solid exporter and domestic crusher demand, as last week’s price drop caused crush margins to widen significantly, was also supportive, according to participants.
Advances in Chicago Board of trade soybeans provided spillover support as well, although soyoil turned lower late in the day.
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Excessive moisture in parts of Manitoba over the past weekend raised some fresh weather concerns, highlighting the need to keep some premiums in the futures. However, crop conditions remain relatively favourable overall across the Prairies.
Statistics Canada releases its latest acreage estimates on
Wednesday, and positioning ahead of the report accounted for some activity as well.
About 26,591 canola contracts were traded on Tuesday, which compares with Monday when 30,322 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 twelve to seventeen cents per bushel higher on Tuesday, continuing to strengthen after a recent sell-off.
Forecasts for above-average temperatures in the US continued to underpin the market.
A weaker US dollar added to the advances on Tuesday.
The expectation for strong export demand from China continued to prop up prices.
Trader positioning ahead of Thursday’s United States Department of Agriculture stocks report was also a feature.
SOYOIL prices closed weaker on Tuesday, tracking losses in Malaysian palm oil.
SOYMEAL closed stronger on Tuesday.
CORN futures were unchanged to about three cents per bushel lower on Tuesday, pressured by favourable crop conditions.
Corn’s crop conditions were steady on the week, coming in with 75 per cent of the crop in good to excellent condition, compared with a 68 per cent five-year-average.
China continues to sell off its corn reserves, which added to the declines.
However, a rebound in crude oil prices limited losses on Tuesday.
WHEAT closed one to three cents per bushel weaker on Tuesday, pressured by the ongoing winter wheat harvest.
This year’s harvest is slightly ahead of last year’s pace, which is bearish.
India’s wheat stocks are in a comfortable position, reports out of the country say.
– US spring wheat dropped four per cent in the good to excellent category from 76 per cent last week, market watchers say.
– Wheat is expected to come in between 953 million and one billion bushels on Thursday’s grain stocks reports.
