The ICE Futures canola market was weaker on Tuesday, taking back Monday’s gains as values continued to chop around within a relatively narrow range.
Losses in Chicago soyoil accounted for some spillover selling pressure in the Canadian oilseed, with European rapeseed also down on the day. Strength in the Canadian dollar was another bearish influence.
Crop conditions are thought to be relatively favourable across most of the Prairies, with Manitoba and Saskatchewan seeing some rain on Tuesday. However, the longer-range outlooks call for warmer and drier conditions which should be keeping some weather premiums in the futures.
About 13,019 canola contracts traded on Tuesday, which compares with Monday when 14,666 contracts changed hands. Spreading accounted for 4,424 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, taking back Monday’s gains as relatively favourable Midwestern crop conditions weighed on values.
The United States soybean crop was rated 61 per cent good-to-excellent in the latest weekly report, which was down one point from the previous week. Blooming was pegged at 48 per cent, slightly off the 55 per cent average.
China was reportedly in the market making large purchases of new crop soybeans, but there was no confirmation in the daily U.S. Department of Agriculture reports. At the same time, concerns over increasing covid cases in China, and the likelihood of stricter lockdown measures, raised some questions over the country’s demand.
Malaysia is reportedly keeping its palm oil export tax at eight per cent, despite a move by nearby Indonesia to suspend its own export taxes through August.
CORN was also pressured lower by the latest crop ratings.
Condition ratings for the U.S. corn crop held steady at 64 per cent good-to-excellent, which beat expectations for a slight downgrade on the week.
Updated forecasts calling for more rain over the next 10 days were bearish for corn, although hot temperatures were also being watched.
The excessive heat in Europe is cutting into the cut crop prospects for corn there, helping underpin the U.S. futures.
WHEAT was lower after trading to both sides of unchanged, with the largest losses in Minneapolis spring wheat.
The U.S. spring wheat crop was rated 71 per cent good-to-excellent, moving up one point from the previous week and beating expectations.
Meanwhile, the U.S. winter wheat harvest was 70 per cent complete as of this past Sunday, slightly off the 75 per cent pre-report estimate.
