North American Grain and Oilseed Review: Canola reverses course after last week’s gains

By Glen Hallick, MarketsFarm

Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed lower on Monday, consolidating after a strong rally last week.

An analyst pointed out the coming hot temperatures across the Prairies this week will put stress on flowering canola and that might see an upward climb in the oilseed’s prices.

Pressure on the canola today was felt from sharp declines in the Chicago soy complex and European rapeseed. The Malaysian palm oil market was closed for a holiday. Losses in crude oil prices weighed on vegetable oil values.

Gains in the canola crush margins saw the November positions rise to about C$152.50 per tonne above the futures.

Today’s losses in the November saw canola fall back closer to its 100-day moving average.

The Canadian dollar was relatively steady by mid-afternoon Monday with the loonie at 73.31 U.S. cents compared to Friday’s close of 73.35.

There were 46,229 contracts traded on Monday, compared to the 49,219 contracts that changed hands on Friday. Spreading accounted for 17,438 contracts traded.

Prices are in Canadian dollars per metric tonne:

                        Price     Change

Canola          Nov     648.40    dn  9.80

                Jan     658.20    dn 10.30

                Mar     665.80    dn 10.40

                May     671.30    dn 10.30

SOYBEAN futures at the Chicago Board of Trade were down sharply on Monday, seeing its lowest levels in quite some time.

The United States Department of Agriculture issued its export inspections report, and for the week ended July 4 soybean exports came to 273,321 tonnes, compared to 319,828 a week ago. The year-to-date rose to 41.83 million tonnes but remained well behind the 49.73 million this time last year.

The USDA is scheduled to publish its July supply and demand estimates on Friday. An analyst said the report is unlikely to have a major impact on the markets.

Conab is scheduled to release its monthly report on Thursday.

A public furor in China arose after state media accused Sinograin of not cleaning fuel oil tankers before the vessels are used to carry cooking oil. Sinograin said it has launched an investigation into the matter.

CORN futures were weaker on Monday, due to a lack of bullish news.

While Hurricane Beryl will drop large amounts of rain along the U.S. Gulf Coast, further inland it will bring much needed precipitation to the Eastern Corn Belt. Temperatures in some western U.S. States were forecast to reach 50 degrees Celsius.

The USDA reported corn export sales for 135,636 tonnes to unknown destinations. About a third is to be delivered in 2023/24 with the balance in 2024/25.

U.S. corn export inspections improved to 1.02 million tonnes versus the 831,195 tonnes last week. The year-to-date handily remained well ahead of last year at 43.51 million tonnes versus 33.54 million.

AgRural put the Brazil second corn crop harvest at 63 per cent complete in the key center-south region. That’s up 14 points from a week ago.

WHEAT futures were down hard on Monday, in sympathy with soybeans and corn.

Export inspections of U.S. wheat tallied 341,005 tonnes, up slightly from 335,235 last week. The year-to-date was a little ahead of the year ago at 1.73 million tonnes versus 1.52 million.

With about half of France’s barley combined, consultancy Agritel placed the crop at seven million tonnes compared year’s harvest of 9.66 million.