North American Grain and Oilseed Review: Canola finds support from soyoil, rapeseed
U.S. soybeans, corn lower, wheat mixed
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures regained a little bit more lost ground on Tuesday, with the largest increases in the old crop contracts.
While gains in Chicago soyoil and European rapeseed spilled over into canola, there was pressure from declines in soybeans and soymeal. The Malaysian palm oil market was closed for a holiday. Crude oil gave up earlier increases to pull back, weighing on the vegetable oils.
An analyst commented he hopes canola will at least trade sideways so the futures can form a new bottom.
In light of looming Chinese import tariffs on canola meal and oil, there could be a need to find new markets for about two million tonnes of Canadian meal.
Agriculture and Agri-Food Canada is set to issues its monthly supply and demand estimates on Thursday. It will be AAFC’s first crop report based on Statistics Canada’s planting projections from last week.
The Canadian dollar was virtually unchanged on Tuesday afternoon with the loonie at 69.90 U.S. cents.
There were 54,236 contracts traded on Tuesday, compared to 46,593 on Monday. Spreading accounted for 28,290 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola May 574.20 up 4.90 Jul 585.90 up 3.50 Nov 591.70 up 0.20 Jan 599.50 up 0.20
SOYBEAN futures at the Chicago Board of Trade turned lower on Tuesday unable to hang on to earlier increases and lacking fresh domestic news.
Michael Cordonnier kept his projections on soybean production in Brazil at 170 million tonnes and Argentina at 48 million.
ANEC nudged up its call on Brazil’s March soybean exports to 15.56 million tonnes. The exporter group also raised its projection on the month’s soymeal exports to 2.60 million tonnes.
The European Union reported its year-to-date soybean imports at 9.60 million tonnes compared to 8.98 million the same time last year.
The CME Group announced it will open a futures market for European rapeseed oil with trading scheduled to start April 28.
CORN futures were lower on Tuesday, feeling pressure from declines in soy and crude oil.
The U.S. Energy Information Administration is set to release its report tomorrow.
Cordonnier held his estimates on Brazil corn production at 123 million tonnes and Argentina at 46 million.
WHEAT futures were mixed on Tuesday with slight increases in Kansas City and small losses in Minneapolis and Chicago.
The U.S. Department of Agriculture reported the condition of Kansas winter wheat at 48 per cent good to excellent, down four points from last week. Colorado lost seven points at 60 per cent good to excellent, while Oklahoma held at 46 per cent and Texas stayed at 28 per cent.
EU soft wheat exports so far this marketing year reached 14.92 million tonnes, compared to 22.92 million a year ago.
Japan issued a tender for 122,456 tonnes of wheat from Australia, Canada and the U.S.
The CME Group is to open its North American spring wheat futures market on April 14.
