By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Aug. 22 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Tuesday, taking back all of Monday’s losses.
Speculators are still holding large net long positions in canola, and relatively favourable chart signals had them on the buy side on Tuesday, according to a broker.
Uncertainty over the size of this year’s canola crop contributed to the gains, as participants adjust positions ahead of next week’s production report from Statistics Canada.
A lack of farmer selling was also deemed supportive, but harvest operations are in their early stages and the mounting seasonal harvest pressure kept a lid on the upside.
About 11,006 canola contracts traded on Tuesday, which compares with Monday when 7,210 contracts changed hands. Spreading accounted for 5,840 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
Chicago Board of Trade soybean contracts posted small gains of one to two cents per bushel on Tuesday, as traders kept an eye on the mixed results coming out of a crop tour of key US growing regions taking place this week.
Early pod counts were varied, with some areas seeing lower numbers on the year, while others are looking a bit better.
Ideas that Brazil’s next crop may be down on the year, despite expectations for increased planted area, were also a bit supportive.
The weekly USDA crop progress report provided little direction, with 60 per cent of the soybean crop in good-to-excellent condition. That was up one point on the week.
Corn prices were down two to three cents, with the varied crop tour results also keeping some caution in the market.
Nearby weather forecasts look relatively favourable for the developing crops, putting some pressure on prices.
US corn was rated 62 per cent good to excellent in the latest report, which was unchanged from the previous week.
Wheat was down five to 14 cents, with the largest losses in Minneapolis spring wheat as the latest USDA report showed a slight improvement in US condition ratings.
The USDA reported that 34 percent of the US spring wheat crop was rated good-to-excellent, up one point on the week.
On the other side, concerns over frost damage to Australia’s wheat crop provided some support.