North American Grain and Oilseed Review: Pressure pulls canola lower
U.S. soybeans, corn, wheat fall back
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures dropped back on Thursday, pulled down by spring planting progress and declines in comparable oils.
Overall seeding progress in Saskatchewan reached 77 per cent complete with the province’s canola at 71 per cent finished.
There were losses in the Chicago soy complex, European rapeseed and Malaysian palm oil. Decreases in global crude oil added more pressure on the oilseeds.
Statistics Canada released its monthly report on producer deliveries of major grains, showing those for canola came to 1.44 million tonnes, up from 1.20 million a year ago. StatCan also issued its monthly crush report with 957,639 tonnes of canola processed last month compared to 886,489 the previous April.
The Canadian dollar was higher by mid-afternoon Thursday with the loonie rising to 73.15 U.S. cents compared to Wednesday’s close of 72.99.
There were 45,524 contracts traded on Thursday, compared to the 30,983 contracts that changed hands on Wednesday. Spreading accounted for 28,112 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 660.20 dn 11.50 Nov 683.20 dn 9.70 Jan 691.00 dn 10.20 Mar 698.00 dn 10.60
SOYBEAN futures at the Chicago Board of Trade were lower on Thursday as planting progress continued to pull values lower.
Ahead of the export sales report from the United States Department of Agriculture, the trade pegged old crop soybeans at 200,000 to 400,000 tonnes and new crop at zero to 150,000 tonnes. Soymeal export sales are to be 100,000 to 410,000 tonnes and soyoil at net reductions of 5,000 tonnes to net sales of 20,000 tonnes.
Rain has been forecast next week for the U.S. soybean and corn growing areas. While that will delay the planting, the moisture will benefit the crops already in the ground.
CORN futures were also lower on Thursday due to spring planting.
The U.S. Energy Information Administration reported for the week ended May 24 that ethanol production slipped to an average of 1.07 million barrels per day, but a little above trade expectations. Ethanol stocks dropped to their lowest level in six months at 23.21 million barrels, slipping below market guesses.
Projections for the export sales report placed old crop corn at 600,000 to one million tonnes and new crop at zero to 400,000 tonnes.
The USDA proposed to bulk test milk for avian influenza rather testing samples from individual dairy cows.
Ukraine’s agriculture minister said the country’s grain exports are to drop to 38 million to 40 million tonnes in 2024/25 due to reduced production. Meanwhile, Ukraine’s harvest is set to begin in early June rather than during the second half of the month.
Meat processor JBS said beef shipments from its Greeley, Col. Plant were blocked by China from entering the country due to traces of the feed additive ractopamine.
WHEAT futures were weaker on Thursday as the winter wheat harvest is underway.
Reports put the harvest in Texas at 21 per cent complete and Oklahoma at 12 per cent finished.
Estimates for export sales of U.S. wheat include old crop with net reductions of 100,000 tonnes to net sales of 100,000 tonnes. New crop sales are to be between 200,000 to 400,000 tonnes.
Taiwan bought 96,850 tonnes of U.S. wheat.
The European Union announced it will impose tariffs on cereals, oilseeds and derived products from Russia and Belarus effective July 1. Russia exported 4.2 million tonnes to the EU in 2023, which was about one per cent of its market.
India’s monsoon rains came early, which brought some respite to temperatures that pushed above 50 degrees Celsius.
