North American Grain and Oilseed Review: Canola finishes either side of steady
More losses for U.S. soybeans, corn, wheat
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures ended Friday on a mixed note as they attempted to regain their advances from earlier in the session.
While support for canola came from upticks in European rapeseed, Malaysian palm and Chicago soymeal, losses in soybeans and soyoil stymied a recovery. Small losses in crude oil put some pressure on the vegetable oils.
Farmer selling also weighed on canola values.
Canola exports continued to limp along with less than 84,000 tonnes for the week ended May 26, according to the Canadian Grain Commission. But at that pace, exports would be within striking distance of Agriculture and Agri-Food Canada’s revised projection of six million tonnes.
Parts of Alberta and Saskatchewan were forecast to get rain today, with Manitoba getting its turn for more moisture early next week. Prairie temperatures are to climb to the high 20 degrees Celsius during the weekend.
Alberta reported spring planting provincewide reached 77 per cent as of May 28, with the canola two-thirds complete.
The Canadian dollar was higher by mid-afternoon Friday with the loonie at 73.36 U.S. cents compared to Thursday’s close of 73.11.
There were 35,095 contracts traded on Friday, compared to the 45,524 contracts that changed hands on Thursday. Spreading accounted for 19,584 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 661.00 up 0.80 Nov 683.20 unchanged Jan 690.20 dn 0.80 Mar 696.60 dn 1.40
SOYBEAN futures at the Chicago Board of Trade were lower on Friday, as planting progress continues to pull prices back.
Soybean planting is believed to have made good progress during the week, but there are instances of erosion in areas that received heavy rains.
The United States Department of Agriculture published its export sales report, which was delayed because of Memorial Day. Old crop soybean sales came in at 329,400 tonnes and new crop sales were 6,900 tonnes. Old crop soymeal sales amounted to 265,500 tonnes plus 20,200 tonnes of new crop. Soyoil sales tallied 10,200 tonnes. All of these sales were within market expectations.
The USDA’s fats and oils report is to be released on Monday and the average trade guess called for the April soybean crush to be at 175.5 million bushels and soyoil stocks are to be about 2.23 billion pounds.
Argentina’s government estimated its soybean harvest was 86 per cent complete, four points behind the five-year average.
The Buenos Aires Grain Exchange held is soybean production estimate for Argentina at 50 million tonnes.
CORN futures were lower on Friday, due to spring planting.
The U.S. Midwest is to get some rain over the next five days. Heavier rainfall is forecast for the Southern Plains.
The USDA said corn export sales included 810,100 tonnes of old crop along with 187,800 tonnes of new crop and both were within trade guesses.
While Argentina placed its corn harvest at 44 per cent finished, the BAGE estimated it to be well back at 30 per cent done. Also, the BAGE kept its production call at 46.5 million tonnes.
WHEAT futures were lower on Friday, in sympathy with soybeans and corn.
Export sales of U.S. wheat included 60,900 tonnes of old crop and 381,700 tonnes of new crop and both were within market expectations.
The USDA is expected to include their first spring wheat ratings in its crop progress report on Monday.
There was some rain for parched Russian wheat crops, but reports said the moisture was not enough. More rain has been forecast for parts of Russia and Ukraine over the next 10 days, while temperatures in the south of both countries are too well exceed 30 degrees Celsius.
Russia held onto its forecast for total grain production at 132 million tonnes, of which 85 million is to be wheat.
