North American Grain and Oilseed Review: Canola makes a recovery
Spring seeding sows lower U.S. prices
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures finished higher on Wednesday, due to positive spillover from other vegetable oils.
There were gains in Chicago soyoil, European rapeseed and Malaysian palm oil. However, pressure came from losses in Chicago soybeans and soymeal. A moderate downturn in crude oil weighed on veg oil values.
Eastern Saskatchewan and the northern growing regions of Alberta are forecast to receive rain over the next couple of days.
Manitoba Agriculture reported overall spring planting in the province was almost two-thirds complete, with the canola at more than 40 per cent in the ground.
The Canadian dollar dropped back by mid-afternoon Wednesday with the loonie falling to 72.93 U.S. cents compared to Tuesday’s close of 73.32.
There were 30,983 contracts traded on Wednesday, compared to the 38,599 contracts that changed hands on Tuesday. Spreading accounted for 16,398 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 671.70 up 3.00 Nov 692.90 up 2.70 Jan 701.20 up 3.00 Mar 708.60 up 3.20
SOYBEAN futures at the Chicago Board of Trade were weaker on Wednesday, as the turned it focus on planting progress in the United States.
The U.S. Department of Agriculture issued its crop progress report, showing soybeans planted at 68 per cent complete as of May 26, up 16 points on the week and five ahead of the five-year average. Soybeans emerged rose to 39 per cent, for a gain of 13 points and three ahead of the average.
Nutrien announced three fertilizer blending plants in Brazil will be shut down indefinitely due to difficult market conditions. Previously, Nutrien said its selling assets in Argentina, Chile and Uruguay.
While soybean planting in the European Union is reported to be on track, the sowing of sunflowers has seen mixed progress due to rain.
CORN futures were lower on Wednesday, also due planting progress.
U.S. corn planted progressed 13 points on the week at 83 per cent finished, and virtually on par with the average pace. Corn emerged reached 58 per cent, up 18 points and equal to the average pace.
The U.S. Energy Information Administration postponed its weekly report to Thursday following the holiday on Monday.
China approved two varieties of GMO corn from Argentina, which could see China begin importing corn from the South American country.
Corn planting in the EU has been contending with dry conditions in some areas and cold, wet conditions in other regions.
WHEAT futures were down on Wednesday in sympathy with soybeans and corn.
The USDA reported spring planted was 88 per cent done, progressing nine points on the week and seven ahead of the average. Spring wheat emerged was at 61 per cent, up 18 points from a week ago and nine ahead of the average pace.
U.S. winter wheat conditions dipped one point from last week at 48 per cent good to excellent. The crop in Kansas rated 32 per cent good to excellent with 32 per cent poor to very poor. Winter wheat headed hit 77 per cent, up eight points from last week as well as the five-year average.
Reuters reported that India is set to import wheat for the first time in six years as the country’s government expected to eliminate the 40 per cent tariff on wheat imports.
