By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 16 (MarketsFarm) – The ICE Futures canola market was weaker on Tuesday, seeing follow-through selling after Monday’s declines as activity in outside markets continued to weigh on values.
Ongoing global economic uncertainty accounted for continued selling pressure in crude oil, which spilled into world vegetable oil markets. Chicago soyoil and European rapeseed futures were both weaker, contributing to the softer tone in canola.
Relatively favourable Prairie crop conditions also weighed on values, although enough areas of concern persist to keep some caution in the futures especially as many fields are thought to be at least two weeks behind normal in their development.
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About 20,677 canola contracts traded on Tuesday, which compares with Monday when 23,804 contracts changed hands. Spreading accounted for 9,532 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday as concerns over soft Chinese economic data weighed on world financial markets for the second day in a row.
Weather forecasts calling for welcome rains and cooler temperatures across much of the Midwest added to the selling pressure in the soy complex.
Condition ratings for the United States soybean crop dipped one point in the good-to-excellent category in the latest weekly report, now coming in at 58 per cent good-to-excellent.
An estimated 93 per cent of the crop was blooming, which was line with the average.
Monthly crush data showed 170.2 million bushels of soybeans were crushed in the U.S. in July, which was slightly below expectations.
The U.S. Department of Agriculture reported private export sales of 228,606 tonnes of soybeans to Mexico this morning.
CORN was also pressured by the good Midwestern weather and follow-through after Monday’s declines.
The U.S. corn crop was rated 57 per cent good-to-excellent, down one point on the week.
The harvest of Brazil’s second corn crop is running ahead of normal according to reports out of the country, at 85 per cent done.
WHEAT was lower across the board, although it lagged soybeans and corn to the downside.
The U.S. winter wheat crop was 90 per cent harvested as of this past Sunday, which was four points off the average for this time of year. Meanwhile, spring wheat was 16 per cent harvested. Condition ratings for spring wheat were left unchanged at 64 per cent good-to-excellent.
Russia’s wheat crop was pegged at 94.7 million tonnes, according to SovEcon, up by 3.8 million from an earlier estimate due to record high yields.
