North American Grain and Oilseed Review: Sharp upswings push canola higher
Gains for U.S. soybeans, corn, wheat
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were stronger on Tuesday, with the Canadian oilseed pulled along by increases in comparable oils.
Gains in Malaysian palm oil and European rapeseed brought them close or at new contract highs. The Chicago soy complex climbed higher, with significant upticks in soyoil. However, soymeal incurred small losses. Advances in crude oil lent support to the vegetable oils.
An analyst placed resistance for canola at around C$670 per tonne, maybe as high as C$690. He added that the increases in canola may spur more short covering by the spec funds.
The January contract surpassed its 200-day moving average, making the oilseed’s tone more bullish
By mid-afternoon Tuesday, the Canadian dollar rose to 72.35 U.S. cents compared to Monday’s close of 72.28.
There were 65,242 contracts traded on Tuesday, compared to 52,780 on Monday. Spreading accounted for 32,692 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 632.70 up 12.60 Jan 644.50 up 13.60 Mar 655.30 up 13.40 May 662.30 up 12.50
SOYBEAN futures at the Chicago Board of Trade were higher on Tuesday, due to speculation of Chinese buying ahead of the possible re-election of Donald Trump as United States president. China is concerned about Trump imposing tariffs.
The U.S. Department of Agriculture released its crop progress report for the week ended Oct. 20, with the soybean harvest advancing 14 points to 81 per cent finished. It’s also 14 points ahead of the five-year average.
Dr. Michael Cordonnier of Soybean and Corn Advisor Inc. kept his calls on Brazil and Argentina soybean production at 165 million and 57 million tonnes respectively.
Rain is in the extended forecast for Brazil and Argentina, which would relieve some of the stress on their crops.
CORN futures were higher on Tuesday, shaking off any signs of choppy trading.
The USDA placed the corn harvest at 65 per cent complete, up 18 points from last week and 13 ahead of the five-year average.
The department announced a private sale for 359,500 tonnes of current crop corn to Mexico.
Cordonnier maintained his projections on Brazil and Argentina corn output at 125 million and 48 million tonnes respectively.
WHEAT futures were higher on Tuesday, with crop uncertainty in different parts of the world.
The planting of winter wheat in the U.S. climbed nine points at 73 per cent done, with the pace three points behind the five-year average. Winter wheat emerged rose 11 points at 46 per cent, but that’s four back of the average.
While U.S. winter wheat growing areas received some rain, concerns remain about the crop establishing.
While consultancy SovEcon forecast the Russian wheat crop at 80.1 million tonnes, rival IKAR placed it at 80 million to 85 million tonnes.
At almost four months into the 2024/25 crop year, the European Commission reported 7.02 million tonnes of soft wheat have been exported, down 3.20 million from a year ago.
