By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 15 (MarketsFarm) – The ICE Futures canola market was weaker for the third-straight session on Tuesday, taking some direction from Chicago Board of Trade soybeans.
Recent rains across Western Canada have helped take some of the weather premium out of the market.
However, the downtrend was showing signs of slowing down, as the forecasts turn hotter and the crops will still need more moisture going forward.
Weakness in the Canadian dollar, which tested support at the psychological 82 U.S. cents level, was also supportive.
About 12,064 canola contracts traded on Tuesday, which compares with Monday when 17,688 contracts changed hands. Spreading accounted for 4,822 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, posting losses despite declining condition ratings for the United States crop.
The U.S. Department of Agriculture reported that 62 per cent of country’s soybeans were rated good-to-excellent as of June 13, losing three points in the top quality categories from the previous week. Seeding was 94 per cent complete, with emergence at 86 per cent – both above average.
Longer range forecasts call for some beneficial rain across much of the Midwest, which should help condition ratings show some improvement going forward.
Monthly U.S. soybean crush data came in below expectations, with 163.5 million tonnes crushed in May. While that was up from the previous month, it fell short of trade guesses closer to 165 million.
CORN was mixed, with gains in the nearby July contract and losses in the more active new crop months, with speculative profit-taking a feature.
The U.S. corn condition ratings also deteriorated on the week. The crop was down four points on the week, at 68 per cent good-to-excellent. Iowa alone saw a 14 point drop, to 63 per cent good-to-excellent.
WHEAT futures were mixed, with gains in Minneapolis spring wheat and losses in the winter wheats.
U.S. spring wheat was pegged at 37 per cent good-to-excellent, down one point on the week, with the Dakotas only at 22 per cent good-to-excellent.
Winter wheat came in at 48 per cent good-to-excellent, a drop of two points from the previous week.
Futures Prices as of June 15, 2021
Prices are in Canadian dollars per metric ton