WINNIPEG, Aug. 4 (MarketsFarm) – The ICE Futures canola market was stronger on Wednesday, after trading within a wide range in choppy activity.
Ongoing concerns over hot and dry Prairie weather cutting into the size of the Canadian crop remained supportive, as industry participants lower their yield expectations. The nearby forecasts remain relatively hot and dry, with any moisture at this stage of development unlikely to do much for the crops.
The Chicago soy complex was mixed on the day, accounting for some of the volatility in the Canadian oilseed.
The Canadian dollar held relatively steady, providing little direction.
About 20,917 canola contracts traded on Wednesday, which compares with Tuesday when 22,901 contracts changed hands. Spreading accounted for 12,698 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Wednesday, with chart-based positioning a feature of the choppy activity amid ideas Tuesday’s losses were overdone.
Shifting Midwestern weather forecasts kept some caution in the market. While recent hot and dry weather remained supportive, the longer range outlooks now call for more moisture over the next few weeks which should help developing crops.
Soymeal was also higher on the day, but soyoil was down as the spreads between the products saw some adjustment.
CORN was also watching the Midwestern weather closely, with the improving moisture prospects putting some pressure on values.
The United States Department of Agriculture releases updated supply/demand estimates on Aug. 12, which will include revised yield projections. Production estimates are all over the place as industry participants weigh the good prospects in the eastern Corn Belt against the drought in the west.
Brazil’s second crop corn harvest is about half complete, according to reports out of the country, running slightly behind normal.
WHEAT was lower, as the market continued to consolidate after rallying to start the week. The largest declines were in Minneapolis spring wheat.
Seasonal harvest pressure accounted for some of the weakness, as the U.S. winter wheat harvest nears completion and the spring wheat harvest is running ahead of normal.
Declining production estimates out of Russia were somewhat supportive, with the state of the North American spring wheat crop also providing support.
