North American Grain and Oilseed Review: Canola can’t hang on to increases
Losses all around in Chicago
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures turned slightly lower on Friday, giving up their gains from earlier in the session.
Pressure on canola came from declines in the Chicago soy complex after it struggled as well to maintain increases. However, support was derived from upticks in Malaysian palm oil and European rapeseed. Crude also did an about-face with declines weighing on the vegetable oils.
The canola market was underpinned by skepticism towards rain in the weekend Prairie forecast, as well as tight old crop supplies.
The Canadian Grain Commission reported cumulative canola exports reached 8.81 million tonnes, further exceeding Agriculture and Agri-Food Canada’s May estimate of 8.50 million tonnes. AAFC is supposed to publish its June supply and demand report today.
An analyst said this spring’s gains in canola prices could see farmers planting more canola acres than the 21.6 million projected by Statistics Canada in March. StatCan will issue its latest round of planted area estimates on June 27. The analyst suggested total canola acres could top 22 million.
The Canadian dollar was virtually unchanged on Friday afternoon with the loonie at 72.88 U.S. cents compared to Thursday’s close of 72.87.
There were 54,862 contracts traded on Friday, compared to 28,184 on Thursday. Spreading accounted for 33,390 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 743.60 dn 1.70 Nov 742.70 dn 1.30 Jan 750.30 dn 2.00 Mar 754.50 dn 3.40
SOYBEAN futures at the Chicago Board of Trade faded from early gains into losses on Friday, due to profit taking.
The United States Department of Agriculture issued its weekly export sales report, delayed a day for the Juneteenth holiday. Old crop soybeans came in at 539,500 tonnes and new crop sales were 75,200 tonnes with both meeting the range of market guesses.
U.S. soymeal export sales amounted to 160,300 tonnes of old crop and new crop sales were 14,000 tonnes and within trade projections. Soyoil incurred a net reduction of 1,500 tonnes, coming in below estimates.
China reported a new May record for soybean imports of 13.92 million tonnes, turning around from an April 10-year low of 6.08 million tonnes. Imports from Brazil accounted for 87 per cent acquired by China last month, while those from the U.S. were less than 12 per cent.
The Buenos Aires Grain Exchange said the Argentine soybean harvest was nearly 97 per cent complete, with total production to reach 50.3 million tonnes.
CORN futures fell back on Friday in sympathy with soybeans.
Heavy rains are coming for a large part of the U.S. Midwest and the Corn Belt this weekend. Temperatures are expected to reach 38 degrees Celsius.
The USDA reported corn export sales of 903,800 tonnes of old crop and 155,000 of new crop, with both coming within trade projections.
The BAGE estimated the Argentine corn harvest at just under the halfway mark, with total output to be 49 million tonnes.
WHEAT futures were lower on Friday, due to profit-taking after rising sharply on the plodding winter wheat harvest.
U.S. wheat export sales tallied 427,200 tonnes and within market guesses.
France rated its soft wheat crop at 68 per cent good to excellent, down two points from last week.
Russia said parts of its Krasnodar region declared a state of emergency due to drought. However, Russia maintained its call of 90 million tonnes of wheat in 2025/26.
