By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sept. 7 (MarketsFarm) – The ICE Futures canola market was weaker on Tuesday, retreating from early gains as a downturn in the Chicago Board of Trade soy complex weighed on values.
Canola started the day posting solid advances amid ongoing concerns over the size of this year’s drought-stricken crop. Weakness in the Canadian dollar was also supportive, as the softer currency helped crush margins improve.
However, losses in CBOT soybeans and soyoil spilled over to the canola market. The production issues have also been factored into the market for some time, and canola is thought to be looking overpriced compared to other oilseeds.
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About 18,038 canola contracts traded on Tuesday, which compares with Friday when 14,477 contracts changed hands. Spreading accounted for 7,598 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, as broad strength in the United States dollar internationally weighed on the grains and oilseeds.
While recent Chinese purchases remained supportive for the soybean market, nearby export movement remains uncertain as facilities on the U.S. Gulf Coast continue to deal with the aftermath of Hurricane Ida.
Relatively favourable Midwestern weather conditions and the looming harvest also weighed on prices, with crop ratings expected to improve in the latest weekly report.
Positioning ahead of Friday’s monthly U.S. Department of Agriculture supply/demand report was a feature.
CORN was also pressured by the strong U.S. dollar and relatively favourable crop weather.
Brazil’s second corn harvest is nearly complete, according to reports out of the country. That accounted for some seasonal pressure on the corn market despite ideas that production in the South American country was likely down from earlier forecasts.
WHEAT was down as well, taking some direction from soybeans and corn.
Australia’s agriculture department raised their estimate on the size of that country’s wheat crop to 32.6 million tonnes. That would be just under last year’s record large crop, and well above the previous forecast of 27.8 million
Solid export demand helped limit the losses in wheat. The USDA reported flash export sales of 327,000 tonnes of hard red winter wheat for delivery to Nigeria Tuesday morning.
