North American Grain and Oilseed Review: Canola starts week on a good note
U.S. soybeans, corn tack on increases
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed higher on Monday, benefitting from spillover from gains in the Chicago soy complex, Malaysian palm oil and European rapeseed. Upticks in crude oil lent support the vegetable oils.
An analyst said that if Canada’s canola exports remain on their current pace, there likely won’t be enough of the oilseed for export by the end of the 2024/25 marketing year.
As the last of the Prairie harvest wraps up, the forecast for the region has called for snow on some parts of Alberta while southern Manitoba is to have temperatures of plus 20 degrees Celsius.
The January canola contract continued to be above most of its major resistance levels, except its 200-day moving average.
By mid-afternoon Monday, the Canadian dollar falls to 72.28 U.S. cents compared to Friday’s close of 72.45.
There were 52,780 contracts traded on Monday, compared to 51,172 on Friday. Spreading accounted for 29,824 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 620.10 up 4.00 Jan 630.90 up 6.40 Mar 641.90 up 7.90 May 649.80 up 8.80
SOYBEAN futures at the Chicago Board of Trade were higher on Monday, benefiting from strong exports.
The United States Department of Agriculture announced two private sales for soybeans with 380,000 tonnes going to unknown destinations.
The USDA issued its export inspections report showing 2.43 million tonnes of soybeans were exported for the week ended Oct. 17. That’s up from the previous week and within trade guesses. The year-to-date of nearly 7.90 million tonnes is slightly behind this time last year.
Ahead of the department’s crop progress report, analysts placed the U.S. soybean harvest at about 80 per cent finished.
November options are set to expire on Friday with the first notice on Oct. 31.
AgRural estimated soybean planting in Brazil at 18 per cent done compared to 30 per cent a year ago.
CORN futures were higher on Monday, due to reduced harvest pressure and a trio of export sales.
Little rain fell over the U.S Midwest on the weekend, which helped the corn and soybean harvests. Light rains are forecast for the region along with above normal temperatures.
The trade pegged the corn harvest at more than 60 per cent complete.
The USDA announced three private sales for corn exceeding 498,000 tonnes split between Mexico, South Korea and unknown destinations.
U.S. corn export inspections of 999,811 tonnes were an improvement from the previous week and within market expectations. The year-to-date of 5.79 million tonnes remained ahead of the year ago pace.
AgRural put the planting of Brazil’s first corn crop at 48 per cent done.
WHEAT futures turned mixed on Monday giving up earlier gains, with losses in Minneapolis and Chicago.
U.S. wheat export inspections came to 268,375 tonnes and below market predictions. However, the year-to-date of 9.26 million tonnes continued to be far above those this time last year.
Despite some rain in Russia, wheat planting in the Black Sea region continued to struggle with dry conditions.
Wheat planting in France of 10 per cent in the ground remained behind last year’s pace of 27 per cent.
