North American Grain and Oilseed Review: More losses for canola
U.S. soybeans, corn, wheat continue higher
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures remained weaker on Wednesday due to pressure from China’s investigation into canola dumping by Canada.
China’s move followed the Canadian government’s hiking tariffs on Chinese electric vehicles by 100 per cent and adding a 25 per cent tariff on steel and aluminum from China.
Losses in Chicago soyoil, European rapeseed and Malaysian palm oil also weighed on canola values. Declines in crude oil added pressure on to the vegetable oils. Upticks in Chicago soybeans and soymeal tried to stymie further decreases in the Canadian oilseed.
The analyst projected Canada’s canola production for 2024/25 to come below 19 million tonnes because of less than expected yields.
Manitoba reported its overall harvest is 24 per cent complete while the province’s canola is at 13 per cent finished.
The Canadian dollar was higher at mid-afternoon Wednesday with the loonie at 73.97 U.S. cents compared to Tuesday’s close of 73.81.
There were 60,704 contracts traded on Wednesday, compared to a record 124,793 on Tuesday. Spreading accounted for 35,316 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 579.70 dn 11.20 Jan 591.20 dn 11.80 Mar 601.60 dn 11.10 May 609.20 dn 10.80
SOYBEAN futures at the Chicago Board of Trade were higher along with soymeal on Wednesday, while soyoil stepped back.
The United States Department of Agriculture issued its crop progress report and as of Sept. 1, soybeans rated 65 per cent good to excellent. That’s down two points from the previous week, but better than the 53 per cent good to excellent a year ago. Soybeans setting pods rose five points to 94 per cent, virtually on par with the five-year average. Soybeans dropping leaves progressed seven points at 13 per cent, three above the average.
The U.S. Census Bureau reported July soybean exports came to 1.50 million tonnes, up 17 per cent from a year ago. At 1.02 million tonnes, soymeal exports slipped 3.5 per cent from the previous July.
Negotiations for a new contract between the International Longshoremen’s Association and the U.S. Maritime Alliance are to start this week. The current deal is set to expire on Sept. 30.
AgRural projected a 0.9 per cent increase in 2024/25 planted soybean acres in Brazil at 114.66 million with production forecast to be 168 million tonnes.
The seeding of winter rapeseed so far in Ukraine reached 446,200 hectares planted.
CORN futures were higher on Wednesday, due to strong monthly exports.
The Census Bureau reported July corn exports of 5.26 million tonnes, more than double compared to a year ago.
Light rain has been forecast for the U.S. Upper Midwest, the Dakotas, and the Central Plains, with amounts from a tenth to a quarter inch.
The USDA said corn remained at 65 per cent good to excellent, which is 12 points higher than this time last year. Corn dough was up six points and at the five-year average of 90 per cent. Corn dented advanced 14 points at 60 per cent, two points above the average. Corn mature gained eight points at 19 per cent, six ahead of the average.
WHEAT futures were stronger on Wednesday building on yesterday’s gains.
The U.S. spring wheat harvest chalked up 19 points at 70 per cent complete and on par with the five-year average. Winter wheat planted was added to the report for the first time this year, pegged at two per cent complete which is equal to the average pace.
Census data showed July exports of U.S. wheat tallied 1.96 million tonnes, almost 15 per cent more than the previous July.
Taiwan purchased 101,700 tonnes of U.S. milling wheat, and Japan bought 87,660 tonnes of wheat from the U.S. and Canada.
Ukraine reported nearly 28,000 hectares of winter wheat has been seeded so far. Last year, more than 4.2 million hectares were planted, and winter wheat accounted for 95 per cent of the country’s wheat production. The 2024 harvest came to 21.8 million tonnes, down slightly from 22 million the year before.
