By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sept. 15 (MarketsFarm) – The ICE Futures canola market was weaker on Tuesday, retreating from nearby highs as overbought price sentiment had speculators booking profits.
Losses in the Chicago Board of Trade soy complex and most other agricultural commodities also weighed on values, according to participants.
Seasonal harvest pressure was another bearish influence on the market.
However, solid end user demand provided some underlying support.
About 28,790 canola contracts traded on Tuesday, which compares with Monday when 28,514 contracts changed hands. Spreading accounted for 19,996 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were backed away from nearby highs on Tuesday, amid ideas that the market was due for a profit-taking correction.
The United States soybean crop was rated 63 per cent good-to-excellent in the latest weekly report from the U.S. Department of Agriculture. That was down two points from the previous week. due largely to frost damage in the North Dakota crop.
The report also noted that 37 per cent of the crop was dropping leaves, which was ahead of the 31 per cent average for this time of year.
U.S. oilseed processors crushed 165.1 million bushels of soybeans in August, according to the latest National Oilseed Processors Association report. That was the slowest crush pace in nine months, and below average trade guesses
The USDA announced private export sales of 132,000 tonnes of soybeans to China this morning plus an additional 132,000 tonnes to other unknown destinations.
Tropical Storm Sally is set to make landfall and bring flooding to southern states. Parts of the Mississippi River are being closed to vessel movement.
CORN futures were also weaker, despite declining crop ratings.
U.S. corn crop ratings fell one point in the top categories, to come in at 60 per cent good-to-excellent. The harvest was five per cent done, which was in line with the average.
The USDA reported private corn export sales of 120,000 tonnes to unknown destinations this morning.
WHEAT futures were lower, with speculative positioning a feature.
The U.S. spring wheat harvest was in line with the five year average, at 92 per cent done. Winter wheat seeding, at 10 per cent done, was slightly ahead of the 8 per cent average for this time of year.
An updated production estimate out of France pegged the country’s soft wheat crop at 29.5 million tonnes, down by 200,000 from an earlier forecast.
Commodity Future Prices
Prices are in Canadian dollars per metric ton