North American Grain and Oilseed Review: Canola bumps up as trading turns choppy
Shortened grain, oilseed session after Thanksgiving
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures managed to hang on to small gains in most months on Friday after stepping away from larger increases earlier in the session.
Support for the Canadian oilseed came from strong upswings in Chicago soyoil, European rapeseed and Malaysian palm oil. Declines in Chicago soybeans and soymeal put a lid on further gains. Crude oil turned lower, putting pressure on the vegetable oils.
An analyst said the trade has put too much emphasis on the threat of tariffs made by United States President-elect Donald Trump.
However, the uncertainty generated by Trump’s comments and what will be his administration’s attitude towards biofuels continued to weigh on values.
The Canadian Grain Commission reported for the week ended Nov. 24 that canola exports reached 3.97 million tonnes, about 90 per cent more than a year ago. At 3.73 million tonnes, domestic use is up 13.4 per cent from the same time last year.
By mid-afternoon Friday the Canadian dollar rose to 71.46 U.S. cents compared to Thursday’s close of 71.38.
There were 53,665 contracts traded on Friday, compared to 24,431 on Thursday. Spreading accounted for 33,174 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jan 574.10 up 2.80 Mar 585.90 up 1.40 May 596.20 up 0.20 Jul 599.60 dn 0.30
SOYBEAN futures at the Chicago Board of Trade were mostly lower on Friday but made a small gain in the January contract.
After being closed for Thanksgiving, trading resumed this morning in the grain and oilseed markets, but ended early.
The United States Department of Agriculture announced two private sales of current crop soybeans to unknown destinations amounting to 991,700 tonnes.
The USDA issued its export sales report for the week ended Nov. 21 with current crop soybeans coming to 2.49 million tonnes which exceeding trade guesses. Those for soymeal exports were 487,300 tonnes and within market expectations, while those for soyoil at 124,800 tonnes are more than double the high end of trade projections.
The department will issue its October crush report on Monday, with the trade looking for about 211 million bushels of soybeans.
While central and western Brazil are forecast to become drier, southern Brazil along with Argentina are to get more rain.
Agroconsult projected the 2024/25 Brazil soybean harvest to be 172.20 million tonnes and exports are to reach 103.40 million tonnes.
CORN futures were higher on Friday, after being unchanged going into Thanksgiving.
Export sales of current crop U.S. corn came to 1.06 million tonne, meeting market forecasts.
Agroconsult estimated the upcoming Brazil corn harvest at 132.70 million tonnes.
Conab projected 2024/25 Brazil ethanol production at 36.08 billion litres, up 67 million litres due to increases in sugarcane. Only 20 per cent of Brazil’s ethanol comes from corn.
WHEAT futures were mixed on Friday, with Chicago and Kansas City to the downside and slight increases for Minneapolis.
Today marked first notice day for December futures.
U.S. wheat export sales tallied 366,800 tonnes and were within trade expectations.
The European Union reduced its call on its 2024/25 wheat production by 300,000 tonnes, now at 112.6 million, making for the smallest harvest since 2012/13.
France reported its soft wheat crop at 93 per cent planted, up three points on the week. It rated 87 per cent good to excellent, down one point from last week.
