North American Grain and Oilseed Review: Canola regains some lost ground
CBOT soy complex closes mixed
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed higher on Monday, but a trader said it’s unclear how far this upswing might go.
The trader said canola was oversold due to the fallout from trade issues with China and the United States. He noted the spec funds eliminated their record long position in the Canadian oilseed.
Gains in Chicago soyoil lent support to canola, but those increases were limited by losses in soymeal, European rapeseed and Malaysian palm oil, while soybeans were mixed. Modest upticks in crude oil underpinned the vegetable oils.
Due to sharp declines last week, canola remained well below its major moving averages.
The Canadian dollar was stronger on Monday afternoon with the loonie at 70.02 U.S. cents compared to Friday’s close of 69.50.
There were 46,593 contracts traded on Monday, compared to 43,299 on Friday. Spreading accounted for 17,814 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola May 569.30 up 8.80 Jul 582.40 up 8.50 Nov 591.50 up 6.70 Jan 599.30 up 6.50
SOYBEAN futures at the Chicago Board of Trade were a pinch lower on Monday, but the new crop positions inched upward. There were slight losses in soymeal, but soyoil climbed higher.
The United States National Oilseed Processors Association reported the February soybean crush came in at 177.87 million bushels, down four per cent from a year ago and well below the average trade guess of 185.23 million. Oil stocks climbed to 1.50 billion pounds from 1.27 billion in January and exceeded the average projection of 1.39 billion.
The U.S. Department of Agriculture said export inspections of soybeans for the week ended March 13 were 646,667 tonnes. That raised the year-to-date to 39.10 million tonnes versus 35.78 million a year ago.
AgRural placed the Brazil soybean harvest at 70 per cent complete, up seven points on the week.
CORN futures bumped up on Monday due to good shipments.
Export inspections of U.S. corn tallied 1.66 million tonnes, with the accumulative total at 30.76 million tonnes compared to 23.19 this time last year.
AgRural said the planting of the Brazil safrinha corn crop was 97 per cent finished.
WHEAT futures were stronger on Monday due dry conditions in parts of the U.S., as well as the Black Sea region and Eastern Europe.
The weather outlook for the U.S. Southern Plains called for drier conditions, while most of the other winter wheat growing areas is to get one to three inches of precipitation.
Outbound shipments of U.S. wheat amounted to 492,658 tonnes, with the year-to-date at 16.37 million versus 13.85 million a year ago.
U.S. President Donald Trump is set to meet with Russian President Vladimir Putin on Tuesday, in hope of getting Putin to agree to the same 30-day ceasefire deal that Ukrainian President Volodymyr Zelenskyy accepted.
India purchased 120,000 tonnes of Russian wheat.
