Soybeans were higher overnight following a further decline in crop ratings on Monday, though prices began to slide as the midday GFS output became available. At the high, November soybeans had been up 19 cents, and were 4.25 cents higher at the close. Commodity fund traders were estimated buyers of 5,000 soybean, 3,000 soymeal, and 2,000 soyoil contracts.
Canadian canola futures were higher through Tuesday and gained slightly against Chicago soybeans. The chart plots new crop price trends in both commodities since May 1st. Note that soybeans have lead the canola market from the June low, though it’s the Canadian canola crop that could potentially hold the more bullish balance sheet. Drought stress in key production provinces looks to be intensifying to conditions not seen since the 2002 drought.
The extended weather forecast continue to fluctuate, while much of the Midwest will be hot into the weekend. It’s still early in the week but crop ratings are expected to be unchanged to slightly lower, which works against yield prospects.
