North American Grain and Oilseed Review: Canola starts week on positive note
U.S. markets closed for Memorial Day
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed higher on Monday, gleaning support from gains in Malaysian palm oil and global crude oil prices.
Meanwhile declines in European rapeseed put some pressure on the Canadian oilseed.
The November canola contract remained above its 200-day moving average which further underpinned values.
As did slight upticks in canola crush margins which saw the November positions bump up to C$116 to C$121 per tonne above the futures.
The Prairies were to remain largely dry on Monday, with only a couple of exceptions. More rain is in the region’s forecast during the week, with central and northern Alberta to get much needed rain come the next few days.
The Canadian dollar was higher by mid-afternoon Monday with the loonie at 73.36 U.S. cents compared to Friday’s close of 73.14.
There were 11,051 contracts traded on Monday, compared to the 30,226 contracts that changed hands on Friday. Spreading accounted for 6,052 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 672.20 up 5.50 Nov 692.80 up 5.70 Jan 699.90 up 5.30 Mar 706.60 up 5.00
The Chicago Board of Trade was closed on Monday for Memorial Day. Trading is scheduled to resume in the evening.
The United States Department of Agriculture has postponed its weekly reports by a day with the export inspections and crop progress reports out Tuesday. The export sales report will be released on Friday.
Soybeans
Datagro trimmed 400,000 tonnes from its call on the ongoing Brazil soybean harvest, now at 147.57 million.
The Ukrainian grain traders union UGA reduced its outlook on the country’s grain and oilseed production by 1.5 million tonnes for 2024, with total output now expected to be 74.6 million tonnes. That’s to include 13.7 million tonnes of sunflower seeds, down from 14.2 million, and soybeans of 5.5 million tonnes, down from 4.9 million, while rapeseed holds at 4.3 million tonnes.
Corn
Thunderstorms brought heavy rain and tornadoes to the U.S. during the weekend, which led to a number of fatalities and widespread damage. Forecasters warned storms today could also add to the devastation.
Datagro lowered its call on the Brazil safrinha corn harvest by 1.35 million tonnes at 90.51 million, while Safras & Mercado cut three million tonnes from its estimate at 83.64 million.
The U.S. and some European countries have begun taking steps to acquire H5N1 bird flu vaccines to protect poultry and dairy workers. The U.S. has banned poultry and byproduct imports from the Australian state of Victoria due to H5N1 concerns.
Ukrainian corn production is fall to 25.5 million tonnes in 2024 from 29.6 million last year, according to UGA.
Wheat
The Indian Meteorological Department said above average monsoon rains will be beneficial to the country’s crops, including wheat.
A Bloomberg report said the Russian government is taking steps to gain greater control over the country’s wheat market by reducing the number of independent players. This comes after Cargill and Viterra withdrew from Russia in 2023.
The UGA pegged the 2024 Ukrainian wheat crop at 19.1 million tonnes, compared to the 22.0 million in 2023.
