North American Grain and Oilseed Review: Canola swings higher
U.S. markets closed for Juneteenth
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures turned around to close higher on Thursday, amid lighter than usual activity.
Trading volumes were lower today as the United States grain markets were closed for the Juneteenth holiday.
Canola received support from upticks in European rapeseed and Malaysian palm oil. Increases in crude oil spilled over into the vegetable oils.
The Canadian oilseed also continued to benefit from tight old crop supplies and uncertainty over the new crop. However, the potential for rain across the Prairies could help rectify the region’s dry conditions.
Some clarity on this year’s canola crop will come June 27 when Statistics Canada issues its crop area report. In March, StatCan projected planted canola acres for 2025/26 at 21.6 million, down 1.7 per cent from the previous year.
The Canadian dollar was lower on Thursday afternoon with the loonie at 72.94 U.S. cents compared to Wednesday’s close of 73.14.
There were 28,184 contracts traded on Thursday, compared to 68,008 on Wednesday. Spreading accounted for 16,226 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 745.30 up 6.80 Nov 744.00 up 7.60 Jan 752.30 up 7.00 Mar 757.90 up 6.30
With the Juneteenth holiday on Thursday the United States grain markets were closed and the U.S. Department of Agriculture postponed its weekly export sales report to Friday.
Ahead of that report, the trade estimated soybean export sales at zero to 400,000 tonnes of old crop and new crop at zero to 200,000 tonnes. Soymeal export sales are estimated at 150,000 to 450,000 tonnes and those for soyoil to tally zero to 32,000 tonnes.
Export sales of U.S. corn are expected to be 600,000 to 1.2 million tonnes of old crop and zero to 200,000 tonnes of new crop. Those for 2025/26 U.S. wheat were estimated at 300,000 to 600,000 tonnes.
The U.S. weather outlook has rain slowing field work throughout much of the Corn Belt. While hot temperatures over the weekend will help to dry out wet areas, they could affect crop development in drier parts of the country.
Reuters reported that China will buy upwards to 500,000 tonnes of canola meal from India in 2025/26, up from less than 61,000 tonnes the previous year. The move is due to China’s 100 per cent tariffs on imports of canola meal and oil from Canada.
Refiners in India cancelled orders for 65,000 tonnes of crude palm oil due to a surge in Malaysian palm oil prices.
A polar air mass is forecast to cross central Argentina during the weekend, raising the possibility of overnight frost.
