North American Grain and Oilseed Review: Canola turns positive
U.S. soybeans, corn rise as wheat falls back
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed higher on Wednesday, taking back about half of yesterday’s steep losses.
This came despite sharp declines in crude oil prices, which would normally place a great pressure on the oilseeds. Support for canola came from upticks in Chicago soybeans and soyoil, while soymeal was lower. European rapeseed and Malaysian palm oil were closed for May Day.
A trader noted there wasn’t a great amount of follow through on Tuesday’s sharp pull back, especially by the funds.
The Prairies were forecast to receive precipitation today with some areas expected to get snow.
Manitoba released its first crop report of 2024, with some cereals such as wheat at four per cent planted. The recordable progress for the oilseeds has yet to begin.
The Canadian dollar turned around by mid-afternoon Wednesday as the loonie rises to 72.95 U.S. cents compared to Tuesday’s close of 72.75.
There were 34,494 contracts traded on Wednesday, compared to Tuesday when 43,539 contracts changed hands. Spreading accounted for 17,386 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 625.70 up 7.70 Nov 642.60 up 7.60 Jan 651.50 up 7.70 Mar 656.80 up 7.60
SOYBEAN futures at the Chicago Board of Trade were higher on Wednesday, as the trade projected the next crush report to be an all-time record.
When the United States Department of Agriculture released its fats and oils report, the March crush came to 204.0 million bushels, 1.6 million less than the average trade guess. However, the latest data exceeded the March 2023 crush of 198 million bushels.
The Biden administration announced yesterday that soybeans grown for sustainable aviation fuel feedstock must done so with cover crops and by zero-till practices.
Ahead of tomorrow’s USDA export sales report, the trade projected old crop soybean sales at 100,000 to 700,000 tonnes and new crop sales towards 200,000 tonnes. Those for soymeal are expected to be 150,000 to 400,000 tonnes and soyoil between a net reduction of 5,000 tonnes to sales of 10,000 tonnes.
CONAB placed the Brazil soybean harvest at 90.5 per cent complete.
Striking oilseed sector workers in Argentina returned to the jobs, but their union said any further action will be decided next week.
CORN futures were higher on Wednesday, in sympathy with soybeans.
The USDA grains crushings report said 469 million bushels of corn were used in March for fuel. That exceeded the average trade guess of 464.5 million bushels and is up seven per cent from a year ago.
Meanwhile, the Energy Information Administration reported ethanol production for the week ended Apr. 26 bumped up to 987,000 barrels per day. However, stocks slipped to just below 25.5 million barrels.
U.S. sales of old crop corn are to be 650,000 to 1.3 million tonnes and new crop sales are projected at up to 300,000 tonnes.
Ukraine reported its April grain exports were 6.3 million tonnes, of which 4.1 million was corn. With two months remaining in the 2023/24 crop year
WHEAT futures were lower on Wednesday, due to the weather forecast.
The U.S. seven-day outlook has rain in store for those western areas of the Plains that have missed out on previous systems.
The trade projected sales of old crop U.S. wheat to be 100,000 tonnes either side of zero, with new crop sales to be between 200,000 to 600,000 tonnes.
Ukraine said its April wheat exports were 1.9 million tonnes and those for barley came to 231,000.
