By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 3 (MarketsFarm) – The ICE Futures canola market was weaker on Wednesday, seeing some follow-through selling pressure after Tuesday’s declines.
Losses in outside markets, including Chicago soyoil and European rapeseed, contributed to the weaker tone in canola with relatively favourable North American crop weather also weighing on values. However, Malaysian palm oil held steady and the losses in canola were starting to look overdone from a chart standpoint.
The weakness in canola helped crush margins show some improvement, bringing in some commercial demand underneath the market.
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Glacier FarmMedia – Canola futures on the Intercontinental Exchange were down in early Tuesday trading, getting little support from comparable oils….
About 28,199 canola contracts traded on Wednesday, which compares with Tuesday when 27,049 contracts changed hands. Spreading accounted for 17,892 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade moved higher on oversold price sentiment and end-user bargain hunting in overnight trade but the buying interest backed away and prices drifted lower as the day progressed.
Shifting weather forecasts now calling for scattered Midwestern showers were behind some of the selling pressure, although the long-range outlooks remain generally hot and dry.
Trade estimates on United States soybean yields range from about 50 to 52 bushels per acre, with the U.S. Department of Agriculture currently at 51.5 bu/ac.
CORN also came under some pressure from the increased precipitation expected in eastern parts of the Corn Belt but managed to hold onto small gains at the close.
The Ukrainian grain shipment announced earlier this week was also a bit bearish, although no more grain has left the war-torn country’s ports yet.
Weekly ethanol data placed production of the renewable fuel in the U.S. at 1.043 million barrels per day, which was up from the previous week. Ethanol stocks came in at just under 23.4 million barrels.
U.S. corn yields are estimated at anywhere from 173 to 177 bushels per acre, with the USDA at 177. Updated supply/demand estimates will be released next week Friday.
WHEAT futures were mixed, with losses in the winter wheats and gains in Minneapolis spring wheat.
Seasonal harvest pressure added to the declines in the winter wheats, with less than a fifth of the crop left to come off the fields.
Relatively favourable spring wheat growing conditions were also bearish, although that market was thought to be due for a correction.
Numerous countries were in the market with tenders for wheat, including Iran, Jordan, Algeria and Tunisia.
