North American Grain and Oilseed Review: Canola almost recovers
Strong gains for U.S. soybeans, wheat
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – In a dramatic turnaround, Intercontinental Exchange canola futures nearly erased all of their losses on Tuesday. While old crop contracts closed with small declines, the new crop positions tacked on slight increases.
During the overnight session, double-digit losses were incurred after United States President Donald Trump suggested he will impose tariffs on Canada and other countries come Feb. 1.
However, sharp increases in Chicago soybeans and soymeal led the charge with soyoil inching upwards. Additional support came from gains in most European rapeseed contracts, but Malaysian palm oil held relatively steady. Losses in crude oil limited the upswing in the vegetable oils.
Agriculture and Agri-Food Canada projected a smaller canola crop in 2025/26, at 17.50 million tonnes with ending stocks tightening to 950,000 tonnes.
The Canadian dollar was relatively steady on Tuesday afternoon with the loonie at 69.75 U.S. cents compared to Monday’s close of 69.78.
There were 57,858 contracts traded on Tuesday, compared to 36,718 on Monday. Spreading accounted for 32,050 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Mar 629.50 dn 2.40 May 638.60 dn 0.90 Jul 644.50 dn 0.40 Nov 632.10 up 2.50
SOYBEAN futures at the Chicago Board of Trade spiked on Tuesday as the United States dollar fell hard, helping to make the former more attractive on the global market.
The U.S. Department of Agriculture issued its export inspections report for the week ended Jan. 16. Outbound shipments of soybeans were 973,145 tonnes, dropping from 1.36 million. That brought the year-to-date to almost 32.30 million tonnes, 5.52 million tonnes more than a year ago.
The Rosario Grain Exchange said the recent rains in Argentina have not been enough to alleviate the dry conditions, meaning a reduced soybean harvest.
Ag Rural pegged the Brazil soybean harvest at nearly two per cent finished.
Abiove raised its forecast on Brazil soybean production for 2024/25 by three million tonnes at 171.70 million.
CORN futures were modestly higher on Tuesday, caught between the surges in soybeans and wheat but the declines in crude oil.
The USDA said corn export inspections were 1.54 million tonnes, slightly higher than a week ago. The year-to-date reached 19.25 million tonnes compared to 14.75 million tonnes this time last year.
Rosario said less corn will likely be combined in Argentina due to ongoing dryness.
AgRural estimated 4.1 per cent of the corn in Brazil’s central south region has been combined.
WHEAT futures were stronger on Tuesday, benefitting from the drop in the U.S. dollar.
U.S. wheat export inspections dipped to 261,786 tonnes from 299,191. However, the year-to-date remained ahead of the year-to-date at 13.01 million tonnes versus 10.41 million.
The European Union reported year-to-date wheat exports of 11.74 million tonnes, down by 6.75 million from a year ago.
Japan issued its weekly wheat tender, looking for 126,893 million tonnes, split between Australia, Canada and the U.S.
