By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, July 7 (MarketsFarm) – The ICE Futures canola market was stronger on Tuesday, hitting its highest levels in three months as speculative short-covering provided support.
In addition to the supportive technical signals, canola was also underpinned by gains in Chicago Board of Trade soyoil and a softer tone in the Canadian dollar.
Concerns over excessive moisture in parts of Western Canada helped keep a weather premium in the market as well.
However, chart-resistance at the highs tempered the advances to some extent. Losses in CBOT soybeans also pressured values.
About 14,237 canola contracts traded on Tuesday, which compares with Monday when 17,774 contracts changed hands. Spreading accounted for 6,224 of the contracts traded.
SOYBEANS at the Chicago Board of Trade were lower on Tuesday, seeing a modest correction off of recent highs.
Soybean condition ratings were left unchanged at 71 per cent good-to-excellent in the latest weekly United States Department of Agriculture report. About 31 per cent of the crop was in the blooming stage of development, which was up seven points from the average for this time of year.
Forecasts calling for hot and dry conditions across much of the Midwest provided some underlying support.
CORN futures were down despite declining condition ratings, as traders took profits on recent gains.
The U.S. corn crop was rated 71 per cent good-to-excellent, losing two points on the week.
The USDA releases its monthly supply/demand report on Friday, and pre-report positioning was a feature. Traders generally anticipate a downward revision to U.S. corn production from earlier estimates and an increase in soybeans. Adjustments to the ending stocks forecasts will also be followed closely.
WHEAT futures traded to both sides of unchanged, but were higher by the close.
The U.S. winter wheat harvest was 56 per cent complete as of this past Sunday, which was in line with trade estimates.
Spring wheat condition ratings improved slightly on the week, moving up one point in the good-to-excellent category to 70 per cent.