North American Grain and Oilseed Review: Canola hangs on to increases
CBOT corn mixed as soybeans, wheat swing upward
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures managed to close higher for a third-straight day on Tuesday, after recovering from late session losses.
Pressure on the Canadian oilseed came from a correction to the downside in Chicago soyoil following the latter’s upward surge. However, canola found support from gains in Chicago soybeans and soymeal as well as Malaysian palm oil and European rapeseed.
Crude oil was stronger after tensions ramped up further in the Israel-Iran conflict. The spillover from crude underpinned the vegetable oils.
An analyst said the markets are wary about rain in the Prairie forecast by this weekend. Dry conditions across the region have started to raise concerns about the new crop.
The Canadian dollar was weaker Tuesday afternoon due to a sharp upswing in its United States counterpart. The loonie fell 73.27 U.S. cents compared to Monday’s close of 73.76.
There were 76,718 contracts traded on Friday, compared to 126,760 on Monday. Spreading accounted for 51,212 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 744.50 up 1.40 Nov 739.80 up 3.90 Jan 748.70 up 4.20 Mar 754.70 up 4.40
SOYBEAN futures at the Chicago Board of Trade were higher on Tuesday along with soymeal, but soyoil corrected to the downside after two days of sharp hikes.
Soyoil benefitted from proposed biofuel changes made by the United States Environmental Protection Agency that were seen as highly favourable to the industry.
The U.S. Department of Agriculture issued its crop progress report for the week ended June 15, with soybeans rated at 66 per cent good to excellent, down two points from the previous week. Spring planting progressed three points to 93 per cent complete and 84 per cent of the crop has emerged with both figures virtually on par with their five-year averages.
The USDA reported a private sale for 120,000 tonnes of new crop soymeal to unknown destinations.
CORN futures were mostly higher on Tuesday, with a loss in the nearby July contract and gains in the new crop positions.
The U.S. corn crop rated 72 per cent good to excellent, up one point from a week ago. Emergence rose seven points to 94 per cent, matching its five-year average.
Crop consultant Michael Cordonnier added one million tonnes to his call on the total 2024/25 Brazil corn harvest bringing it to 130 million tonnes.
WHEAT futures were stronger on Tuesday, due to the slower winter wheat harvest and problematic conditions elsewhere in the world.
The USDA said the winter wheat rated 52 per cent good to excellent, down two points from last week. The crop reached 93 per cent headed, up five points and close to the five-year average. The harvest progressed six points to 10 per cent complete, which is six points behind the average pace.
U.S. spring wheat improved three points on the week at 57 per cent good to excellent. The crop is 89 per cent emerged, up seven points but three behind the five-year average. Spring wheat headed was reported for the first time this year at four per cent, two back of the average.
France trimmed 30,000 acres from is soft wheat harvested area, now at 11.26 million.
Russian seaborne grain exports by sea in May plummeted 62.9 per cent and year-to-date exports of 44.6 million tonnes are down 27.7 per cent. About 90 per cent of Russian grain exports are by sea.
