North American Grain and Oilseed Review: Canola’s big finish to tough week
All green in Chicago
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were stronger on Friday, closing out a difficult week on a high note. Over the last few days canola was hampered by declines.
Support for the Canadian oilseed was derived from sharp upticks in the Chicago soy complex, Malaysian palm oil and European rapeseed. Crude oil was lower, attempting to stymie further gains in the vegetable oils.
The Canadian Grain Commission reported canola exports for the week ended Nov. 10 were more than 264,000 tonnes. That brought the year-to-date to 3.36 million tonnes, about double from a year ago.
An analyst warned canola exports at that pace, coupled with the strong domestic crush, would outstrip the country’s supply.
There’s speculation in the trade that come next month, Statistics Canada could lower its call on 2024/25 canola production by one million tonnes. StatCan previously pegged the crop at 18.98 million tonnes.
At mid-afternoon Friday the Canadian dollar dropped to 70.96 U.S. cents compared to Thursday’s close of 71.29.
There were 77,935 contracts traded on Friday, compared to 67,003 on Wednesday. Spreading accounted for 53,694 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jan 646.70 up 19.10 Mar 660.80 up 20.00 May 669.90 up 19.50 Jul 672.90 up 17.80
SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, underpinned by solid monthly crush data.
The United States National Oilseed Processors Association reported a new monthly crush record of 199.96 million bushels of soybeans in October. That beat market expectations and is 5.4 per cent more than the October 2023 crush. October soyoil stocks were 1.07 billion pounds, down 2.8 per cent from a year ago.
The U.S. Department of Agriculture issued its export sales report for the week ended Nov. 7, showing current crop soybeans at 1.56 million tonnes. Soymeal came in at 302,400 tonnes and those for soyoil are 16,500 tonnes. Each are within their respective trade guesses.
Continuing uncertainty regarding the trade policies of the incoming Trump administrations loomed over the markets.
China is expected to end its tax rebate on exported used cooking oil as of Dec. 1, with that likely cutting the amount imported by the U.S. for biofuel production.
Brazil was forecast to get more rain over the next six to 10 days.
CORN futures were higher on Friday, catching spillover from soybeans and wheat.
The USDA reported corn export sales of 1.32 million tonnes of current crop, which was toward the low end of market predictions.
South Korea bought 134,000 tonnes of corn from optional origins.
WHEAT futures were higher on Friday in a correction from yesterday’s losses.
The U.S. weather outlook called for drier conditions in the Midwest and Plains.
U.S wheat export sales tallied 380,100 tonnes of current crop, and near the low end of projections.
