North American Grain and Oilseed Review: Canola loses grip on small increases
Positive turnaround in Chicago
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were unable to hang on small increases at the end of Thursday’s session despite support from most comparable oils.
Chicago soybeans and soyoil turned around today, but soymeal remained lower. Malaysian palm oil was also to the downside, while European rapeseed was steady to higher. Losses in crude oil nearly evaporated, which took pressure off of the vegetable oils.
Tight canola supplies in Canada continued to underpin the oilseed’s values. However, a measure of caution in canola and other markets hovered in the background due to uncertainty over United States tariffs.
The Canadian dollar was stronger on Thursday afternoon as its U.S. counterpart fell back. The loonie climbed to 70.25 U.S. cents compared to Wednesday’s close of 69.94.
There were 63,136 contracts traded on Thursday, compared to 71,351 on Wednesday. Spreading accounted for 42,458 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Mar 658.60 dn 2.20 May 667.60 dn 2.10 Jul 672.20 dn 1.20 Nov 647.20 dn 2.20
SOYBEAN futures at the Chicago Board of Trade turned around to close higher on Thursday, despite lackluster export sales.
The United States Department of Agriculture issued its exports sale report for the week ended Feb. 6, with old crop soybeans well below market expectations at 185,500 tonnes while new crop was within trade guesses at 24,300 tonnes. Soymeal export sales met predictions at 336,700 tonnes of old crop while soyoil incurred a net reduction of 2,800 tonnes and below guesses.
Conab lowered its forecast for the 2024/25 Brazil soybean harvest by 310,000 tonnes to about 166 million.
The Rosario Grain Exchange dropped its call on the 2024/25 Argentine soybean harvest to 47.5 million tonnes.
CORN futures were higher on Thursday, due to good export sales.
U.S. old crop corn came in at 1.65 million tonnes, near the high end of trade forecasts and the 350,100 tonnes of new crop met expectations.
Conab upped its estimate for this year’s Brazil corn harvest by 2.50 million tonnes to about 122 million, which included a 1.40 million-tonne increase in the safrinha crop at 94.63 million.
Rosario lowered its outlook on 2024/25 Argentina corn production by two million tonnes at 46 million.
South Africa reported its 2024/25 corn crop of 12.85 million tonnes dropped nearly 22 per cent from a year ago.
WHEAT futures were higher on Thursday, in sympathy with corn.
U.S. wheat export sales tallied 569,600 tonnes of old crop and 36,800 of new crop, as both came within market guesses.
Strategie Grains added 500,000 tonnes to its estimate on European Union wheat production to now 127.70 million tonnes.
In international purchases, Algeria has bought up to 480,000 tonnes of wheat, while Saudi Arabia issued a tender for 595,000 tonnes, Taiwan is seeking about 102,500 tonnes and Japan wants to buy almost 124,000 tonnes.
Conab raised its call on Brazil wheat production for 2024/25 to 9.11 million tonnes.
