North American Grain and Oilseed Review: Gains end canola’s downturn
Good conditions in U.S. generate more losses
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed higher on Tuesday, ending a series of sharp losses.
A broker said the recent selloff petered out and the trade was concerned about tight old crop supplies.
The trade also continued to be wary about dry conditions across much of the Canadian Prairies.
Canola also found support from gains in Chicago soyoil, European rapeseed and Malaysian palm oil. Declines in Chicago soybeans and soymeal tempered the upswing in the Canadian oilseed.
Upticks in crude oil further underpinned the increases in the vegetable oils.
The Canadian dollar stepped further back on Tuesday afternoon with the loonie at 73.08 U.S. cents compared to Monday’s close of 73.23.
There were 38,008 contracts traded on Tuesday, compared to 45,294 on Monday. Spreading accounted for 12,756 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 704.10 up 7.30 Jan 712.40 up 7.70 Mar 718.30 up 7.80 May 723.20 up 7.80
SOYBEAN futures at the Chicago Board of Trade continued to pull back on Tuesday due to good growing conditions.
The United States Department of Agriculture issued its crop progress report and as of July 6, soybean ratings held at 66 per cent good to excellent condition. With 96 per cent of the soybean crop emerged, those blooming advanced 15 points from last week at 32 per cent complete, virtually on par with the five-year average. Soybeans setting pods added five points at eight per cent done, two ahead of the pace.
The USDA announced a private sale to the Philippines for 97,000 tonnes of old crop soymeal plus 47,000 tonnes of new crop.
The European Union said its year-to-date soybean imports are 14.25 million tonnes, up 13.20 million a year ago.
CORN futures were lower as well on Tuesday, as potential yields are poised to set new records.
U.S. corn ratings dipped one point at 74 per cent good to excellent. Corn silking added 10 points at 18 per cent done, three ahead of the five-year average. Corn dough registered for the first time this year at three per cent, one ahead of pace.
The USDA said there’s a sale for 112,776 tonnes of new crop corn to Mexico.
WHEAT futures were lower on Tuesday in sympathy with soybeans.
The U.S. winter wheat harvest progressed 16 points at 53 per cent finished, one behind the five-year average. The crop’s condition was unchanged at 48 per cent good to excellent.
U.S. spring wheat rated 50 per cent good to excellent, down three points. Spring wheat headed rose 23 points at 61 per cent, three points ahead of pace.
The EU said its cumulative wheat exports for 2024/25 are 20.33 million tonnes, down 34.6 per cent from this time last year.
SovEcon raised its call on Russian wheat exports by 2.1 million tonnes at 42.9 million.
