North American Grain and Oilseed Review: Canola down on lack of direction from soyoil
U.S. soybeans, corn relatively steady as wheat jumps
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed lower on Wednesday, unable to get any direction from Chicago soyoil, which was virtually unchanged.
An analyst said the recent surge in canola has been due to the significant hike in soyoil prices. Meanwhile Chicago soybeans nudged up and soymeal dipped slightly. Gains in Malaysian palm oil and European rapeseed underpinned canola values. Modest upticks in crude oil lent support to the vegetable oils.
The analyst said the Prairie weather forecast, calling for rain, added more pressure on the Canadian oilseed. About 40 per cent of the region is incurring dry conditions.
He also noted there’s a great deal of uncertainty over the amount of planted canola acres. Statistics Canada will issue its crop area report on June 27, updating its March figures that included canola at 21.6 million acres, slipping 1.7 per cent from 2024/25.
The Canadian dollar fell back on Wednesday afternoon with the loonie at 73.17 U.S. cents compared to Tuesday’s close of 73.51.
There were 68,008 contracts traded on Friday, compared to 76,718 on Tuesday. Spreading accounted for 48,148 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 738.50 dn 6.00 Nov 736.40 dn 3.40 Jan 745.30 dn 3.40 Mar 751.60 dn 3.10
SOYBEAN futures at the Chicago Board of Trade nudged up on Wednesday while soyoil and soymeal were a pinch lower.
The United States grain markets are now closed for Thursday’s Juneteenth holiday and are set to reopen that evening.
The United States Department of Agriculture has postponed its weekly export sales report to Friday. Trade guesses placed old crop soybeans at zero to 400,000 tonnes and new crop at zero to 200,000 tonnes. Soymeal export sales are to be 150,000 to 450,000 tonnes and soyoil is projected to be zero to 32,000 tonnes.
The U.S. Federal Reserve continued its freeze on its key interest rates.
A report said Brazil June soybean exports are projected to be 14.37 million tonnes, up from last week’s estimate of 14.08 million.
The European Union said its cumulative soybean imports reached 13.58 million tonnes, up 930,000 from the same time last year.
CORN futures were slightly higher on Wednesday, due to spillover from wheat.
The U.S. Energy Information Administration reported ethanol production averaged 1.11 million barrels per day, down 11,000 BPD. Ethanol stocks added 386,000 barrels at 24.12 million.
U.S. corn export sales are projected to be 600,000 to 1.2 million tonnes of old crop and new crop at zero to 200,000 tonnes.
WHEAT futures were stronger on Wednesday, as the U.S. winter wheat harvest continued to be delayed by weather.
France trimmed 140,000 tonnes from its call on its soft wheat exports, now at 2.48 million.
The EU said its year-to-date wheat exports are 19.76 million tonnes, falling from 29.81 million a year ago.
Algeria reportedly bought about 560,000 tonnes of wheat.
