By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 8 (MarketsFarm) – The ICE Futures canola market was weaker at Monday’s close after trading to both sides of unchanged.
Gains in Chicago Board of Trade soyoil had provided spillover support for the Canadian oilseed. European rapeseed and Malaysian palm oil futures were also higher on the day. However, soyoil finished well off its session highs, while soybeans were lower in the most active months.
Strength in the Canadian dollar, which was up by roughly half of a cent relative to its United States counterpart, weighed somewhat on values.
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Favourable growing weather across Western Canada was also bearish, although crop development remains delayed in the eastern Prairies. Many fields will need a longer-than-normal frost-free window to reach harvest.
About 19,723 canola contracts traded on Monday, which compares with Friday when 17,063 contracts changed hands. Spreading accounted for 13,374 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker in the most active contracts on Monday with only the lightly-traded front months holding onto small gains. Heavy rains across parts of the Midwest over the weekend accounted for some of the selling pressure, as the moisture should boost the yield potential in the spots where it hit.
However, the longer-range forecasts remain hot and dry, keeping some weather premiums in the market.
The United States Department of Agriculture announced private export sales of 132,000 tonnes of soybeans to China this morning.
Positioning ahead of Friday’s USDA supply/demand report remained a feature. Trade estimates on U.S. soybean yields range from about 50 to 52 bushels per acre, with the USDA currently at 51.5 bu/ac.
CORN was also reacting to the weekend weather and positioning ahead of Friday’s USDA support, settling with small losses.
The USDA announced flash sales of 105,000 tonnes of corn to Italy and an additional 120,000 tonnes to unknown destinations.
However, more vessels left Ukrainian ports moving corn and soybeans over the weekend, with the agreement allowing safe passage through the Black Sea holding for the time being.
Ahead of Friday’s report, U.S. corn yields are estimated at anywhere from 173 to 177 bushels per acre, with the USDA at 177.
WHEAT futures were mixed, with a firm tone in Chicago soft wheat and losses in the winter wheats.
The U.S. winter wheat harvest is nearing completion, while the spring wheat harvest is just getting started.
Russian wheat production estimates were raised by 4.5 million tonnes by IKAR, to 95 million tonnes, as yields have been beating expectations.
Friday’s USDA report will include revisions to spring wheat area in Minnesota and the Dakotas after this year’s later than normal seeding.
