North American Grain and Oilseed Review: Canola rally extends to third day
U.S. soybeans, wheat pull back as corn bumps up
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed higher on Wednesday for the third consecutive day. So far this week, canola has reclaimed nearly C$24 of the C$84.50 per tonne the May contract lost last week.
A trader said that sharp drop in canola was overdone, but he suggested the oilseed is now more competitive on the global market.
Support for canola spilled over from gains in European rapeseed and Malaysian palm oil. However, declines in the Chicago soy complex stymied how far canola could rise. Small upticks in crude oil underpinned the vegetable oils.
Agriculture and Agri-Food Canada is scheduled to publish its monthly supply and demand report on Thursday. The March data will take in the planted area projections issued by Statistics Canada on March 6.
The Canadian dollar was slightly lower on Wednesday afternoon with the loonie at 69.86 U.S. cents compared to Tuesday’s close of 69.93.
There were 66,747 contracts traded on Wednesday, compared to 54,236 on Tuesday. Spreading accounted for 39,812 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola May 584.20 up 10.00 Jul 594.50 up 8.60 Nov 598.50 up 6.80 Jan 606.00 up 6.50
SOYBEAN futures at the Chicago Board of Trade were lower on Wednesday, faced with a still massive crop in Brazil.
Abiove projected the Brazil soybean harvest at 170.90 million tonnes, a cut of 800,000 from its previous forecast.
S&P Global kept its projection for 2025/26 United States planted soybean acres at 83.30 million and Allendale estimated 84.28 million.
The United States Federal Reserve froze its key interest rates but suggested there could be two reductions later this year. The Fed said economic growth in the U.S. is likely to slow while inflation climbs higher.
Ukraine said spring planting there is to include 12.36 million acres of sunflowers and 5.68 million of soybeans.
CORN futures were higher on Wednesday due to increased domestic use.
The U.S. Energy Information Administration reported ethanol production increased 43,000 barrels per day at an average of almost 1.11 million BPD. Ethanol stocks dropped by 801,000 barrels at 26.58 million.
S&P Global added 800,000 acres to its forecast on U.S. planted corn acres at 94.30 million and Allendale pegged it at 93.98 million.
Turkey placed an import quota of one million tonnes of corn for animal feed.
WHEAT futures were lower on Wednesday due to the weather forecast.
Large parts of the U.S. Midwest are to get rain, sleet and snow today, with some areas to see upwards to one foot of snow. The precipitation is to relieve the moderate drought in the region.
Ahead of the U.S. Department of Agriculture export sales report, the trade has expectations of wheat being the second largest for the marketing year.
The London Stock Exchange Group upped its estimate of 2025/26 wheat production in the European Union and the United Kingdom to a total of 140.90 million tonnes. The group held its call on 2025/26 Russian wheat output at 79.60 million tonnes.
Turkey announced it will permit duty-free milling wheat imports provided they’re for flour exports.
