By Phil Franz-Warkentin, MarketsFarm
Winnipeg, June 11 (MarketsFarm) – The ICE Futures canola market was stronger on Tuesday as ongoing Prairie weather concerns provided support.
A large portion of central and southern Saskatchewan continues to miss out on any significant shower activity, leading to uncertainty over the size of this year’s canola crop.
However, the large old crop carryout and ongoing diplomatic dispute with China tempered the upside potential, as end users still see little reason to bid up the market.
The United States Department of Agriculture released its latest production estimates during the trading session. A sharp reduction in projected corn production gave that market a boost, which spilled into the other grains and oilseeds.
About 29,385 canola contracts traded on Tuesday, which compares with Monday when 39,939 contracts changed hands. Spreading accounted for 23,644 of the contracts trade.
CORN futures at the Chicago Board of Trade posted large gains on Tuesday, as the market reacted to a sharp drop in the production estimate from the United States Department of Agriculture.
While the government agency raised its old crop carryout forecast slightly, to 2.195 billion bushels, it slashed new crop production by 1.35 billion from an earlier estimate and pegged the country’s 2019 corn crop at 13.68 billion bushels. The reduction was due to a combination of lower projected yields and lost acres.
In a separate weekly report, the U.S. corn crop was 83 per cent planted as of this past Sunday. That was in line with estimates, but well behind the 99 per cent average for this time of year.
SOYBEANS followed corn higher. The latest USDA numbers were relatively neutral for soybeans, with only minor adjustments to the supply/demand balance sheets.
Projected exports were revised slightly lower, while forecasted U.S. soybean production for 2019/20 was left unchanged at 4.15 billion bushels.
The U.S. soybean crop was 60 per cent seeded as of this past Sunday, which remains well behind normal.
WHEAT was higher, with the largest gains in the winter wheats as the market found some spillover strength from the rally in corn.
The U.S. winter wheat crop was four per cent harvested as of this past Sunday, which compares with the 10 per cent average for this time of year.
Weekly condition ratings were left unchanged at 64 per cent good to excellent for winter wheat. Spring wheat in the country was down two points in the good-to-excellent category, at 81 per cent.
Commodity Future Prices
Prices are in Canadian dollars per metric ton