North American Grain and Oilseed Review: Old crop canola retreats from early gains
A positive tone in Chicago
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures failed to hang on to most of their gains in the old crop contracts on Tuesday, while the new crop positions were narrowly mixed.
There were increases in Chicago soybeans and soyoil, as well as European rapeseed. Malaysian palm oil was relatively steady while Chicago soymeal stepped back. Gains in crude oil lent support to the vegetable oils.
The tightening canola supply situation continued to underpin the oilseed’s values, while the spectre of United States tariffs kept caution in the market.
The May canola contract remained above its major moving averages, which limited the oilseed’s declines.
The Canadian dollar was a pinch higher Tuesday afternoon, with the loonie at 70.49 U.S. cents compared to Friday’s close of 70.43.
There were 55,886 contracts traded on Tuesday, compared to 66,145 on Friday. Spreading accounted for 37,420 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Mar 661.90 dn 1.60 May 673.40 dn 1.10 Jul 678.00 dn 1.40 Nov 654.00 up 0.30
SOYBEAN futures at the Chicago Board of Trade were higher on Tuesday, gleaning support for strong gains in soyoil.
The United States National Oilseed Processors Association reported the January soybean crush came to 200.38 million bushels. While down eight per cent from the previous January, its’ the second largest on record. Soyoil stocks rose to 1.27 billion pounds from 1.24 billion in December.
The U.S. Department of Agriculture issued its export inspections report for the week ended Feb. 13, with soybeans dropping to 720,332 tonnes from 1.10 million a week ago, coming in below trade expectations. The year-to-date climbed to 36.01 million tonnes versus 32.08 million this time last year.
AgRural pegged the Brazil soybean harvest at 23 per cent complete as Feb. 13 compared 32 per cent the same time last year. The most recent production estimates from private and government sources range from 165.87 million to 174.88 million tonnes.
Reuters said Indonesia is studying a plan to possibly raise its biodiesel blend to 50 per cent in 2026. This year, the blend is to increase from 35 per cent to 40 per cent.
CORN futures were higher on Tuesday due to strong export inspections.
Those for U.S. corn improved to 1.61 million tonnes this week from 1.36 million, exceeding market guesses. The year-to-date pushed to 24.73 million tonnes compared to 18.26 million a year ago.
AgRural estimated the harvest of Brazil’s first corn crop at 29 per cent finished as of Feb. 13, while the planting of the safrinha corn reached 36 per cent.
Ukraine said its year-to-date total grain exports hit 27.51 million tonnes, which includes 13.47 million of corn and 11.49 million of wheat.
WHEAT futures were higher on Tuesday gleaning support from soybeans and corn.
The USDA said wheat export inspections tumbled to 249,812 tonnes from 570,298 the previous week, while falling below trade predictions. The year-to-date reached 14.85 million tonnes versus 12.13 million a year ago.
SovEcon lowered its estimate for total Russian grain exports in February to 2.20 million tonnes from 2.75 million. A year ago, the country’s total February grain exports were 4.90 million tonnes.
In international purchases Saudi Arabia bought 920,000 tonnes of wheat, Japan issued a tender for 96,160 tonnes, Jordan is seeking 120,000 tonnes of milling wheat and Bangladesh placed an order for 50,000 tonnes of milling wheat.
