North American Grain and Oilseed Review: Weakness in soy pulls down canola
U.S. soy down due to unclear biofuel policies
By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm –Intercontinental Exchange canola futures closed lower on Friday, due to pressure from the Chicago soy complex, especially sharp losses in soyoil.
Additional pressure came for declines in Malaysian palm oil, while European rapeseed was higher. Crude oil was narrowly mixed, offering little direction to the vegetable oils.
While the old crop July canola contract dipped below its 20-day moving average, it remained well above its other major averages.
The western Prairies received some rain today, but not enough to alleviate dry conditions. Although the eastern half remains dry, there appears to be sufficient subsoil moisture for the time being. Temperatures across the region over the weekend are to range from the mid 20’s to possibly the low 30’s degrees Celsius.
The Canadian Grain Commission reported cumulative canola exports for 2024/25 were nearly 8.35 million tonnes. With 10 weeks left in the marketing year, canola could hit the recently revised export forecast of 8.50 million from Agriculture and Agri-Food Canada.
The Canadian dollar was stronger Friday afternoon with the loonie climbing to 72.88 U.S. cents compared to Thursday’s close of 72.43.
There were 42,968 contracts traded on Friday, compared to 41,848 on Thursday. Spreading accounted for 23,742 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Jul 711.10 dn 8.70 Nov 688.60 dn 3.20 Jan 694.70 dn 3.00 Mar 700.50 dn 2.50
SOYBEAN futures at the Chicago Board of Trade were weaker on Friday, including sharp losses in soyoil, as uncertainty over United States biofuel policy weighed on values.
A U.S. Appeals Court ruled the Trump Administration can continue to collect tariffs from Canada, Mexico and China, as well as the 10 per cent blanket duties. Earlier, the U.S. Court of International Trade said President Donald Trump overstepped his authority in imposing the levies.
The U.S. Department of Agriculture issued its export sales report, postponed one day due to Monday’s holiday. Those for old crop soybeans came to 146,000 tonnes versus pre-report estimates of 150,000 to 500,000 tonnes. New crop sales amounted to 32,800 tonnes, within the zero to 250,000 tonnes projected.
Old crop soymeal export sales were 424,600 tonnes, exceeding market expectations of 150,000 to 400,000 tonnes. New crop sales tallied 178,500 tonnes, far above the zero to 50,000-tonne range. At 19,500 tonnes, soyoil was near the top end.
U.S. Treasury Secretary Scott Bessent said trade talks with China are stalled and might require a meeting between Trump and Chinese President Xi Jinping.
CORN futures were lower on Friday with pressure from soy outweighing support from wheat.
The U.S. Energy Information Administration reported ethanol production averaged nearly 1.06 million barrels per day, up 20,000 BPD.
The USDA said old crop corn export sales tallied 916,700 tonnes compared to expectations of 750,000 to 1.40 million tonnes. New crop was on the low end of guesses at 31,000 tonnes.
The department announced a private sale for 210,560 tonnes of old and new crop corn to unknown destinations.
WHEAT futures were higher on Friday, with strong gains in Minneapolis and slight increases in Kansas City and Chicago.
U.S. wheat sales came to 128,800 versus guesses of net reductions of 200,000 tonnes to net sales of 100,000. New crop sales added up to 711,400 tonnes with the pre-report range at 300,000 to 800,000 tonnes.
