North American Grain and Oilseed Review: Canola pushes higher
Chicago soy complex bumps up, wheat falls back
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed higher on Tuesday due to bullish chart signals.
The July contract remained handily above its major moving averages.
Tighter old crop supplies continued to underpin canola as did concerns over increasing dryness across much of the Prairies.
Support for canola also came from upticks in the Chicago soy complex and Malaysian palm oil. Declines in European rapeseed limited the increases. Moderate losses in crude oil weighed on the vegetable oils.
The Canadian dollar dropped back on Tuesday afternoon with the loonie retreating to 72.51 U.S. cents compared to Monday’s close of 72.83.
There were 42,707 contracts traded on Tuesday, compared to 15,694 on Monday. Spreading accounted for 17,704 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 732.20 up 13.70 Nov 694.30 up 6.30 Jan 700.00 up 6.10 Mar 705.00 up 5.50
SOYBEAN futures at the Chicago Board of Trade were higher on Tuesday, as the Trump administration signaled it could renew United States biofuel blending obligations.
The U.S. Department of Agriculture issued its export inspections report for the week ended May 22, showing 194,904 tonnes of soybeans were exported. That’s down from last week’s 225,358 tonnes. The year-to-date rose to 44.33 million tonnes, almost 11 per cent more than a year ago.
The National Oceanic and Atmospheric Administration said rain fell over three days in an area stretching from Nebraska to the Gulf Coast. More rain is in the seven-day forecast for the same region, with lesser amounts for the Midwest.
Datagro upped its call on Brazil soybean production for 2024/25 by 800,000 tonnes, now at 172 million.
Crop consultant Michael Cordonnier cut his soybean production estimate for Argentina by 1.50 million tonnes, now at 48.5 million due to flooding issues in the South American country.
CORN futures were steady to lower on Tuesday, caught between gains in soybeans and losses in wheat.
The USDA said corn inspections were just short of 1.40 million tonnes, versus 1.76 million last week. Cumulative export inspections reached 46.98 million tonnes, more than 29 per cent from this time last year.
Datagro added one million tonnes to its estimate of Brazil’s 2024/25 corn crop, now at 132.70 million.
AgRural placed the Brazil corn harvest in Mato Grosso and Parana at 0.9 per cent complete, about half of where it was a year ago.
WHEAT futures were weaker on Tuesday with the U.S. winter and spring wheat crops in good shape.
At 561,980 tonnes, U.S. wheat export inspections improved from last week’s 431,334. Year-to-date inspections tallied 21.27 million tonnes, up more than 16 per cent from a year ago.
