North American grain/oilseed review: Canola at 18-month highs to end week

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was stronger on Friday, settling at its highest levels since November 2023.

Canada has exported 7.9 million tonnes of canola through the first nine months of the crop year, according to the latest weekly export sales data. That’s well ahead of the 4.6 million tonnes exported by the same time the previous year, with exports already surpassing Agriculture and Agri-Food Canada’s 7.5 million-tonne target for the crop year.

Chicago soybeans and soyoil were also up on the day, although canola outpaced its United States counterparts to the upside.

Chart-based positioning contributed to the gains in canola, with some stops hit on the way up.

There were 37,278 contracts traded on Friday, which compares with Thursday when 42,012 contracts changed hands. Spreading accounted for 18,500 of the contracts traded.

SOYBEAN and CORN futures at the Chicago Board of Trade were higher on Friday, as optimism over weekend trade talks between the United States and China provided support.

Representatives of the two countries are set to meet in Switzerland, with the possibility of easing tariffs lending strength to the futures.

However, favourable U.S. seeding weather and large Brazilian crops kept a lid on the upside.

The U.S. Department of Agriculture will release its monthly supply/demand estimates on Monday, and pre-report positioning contributed to the activity.

WHEAT futures were lower across the board, hitting contract lows in some months as poor export demand and a lack of any major weather concerns for the U.S. crop weighed on prices.

Dry areas of the Black Sea region were also forecast to receive some welcome rains.

Heat and dryness in China damaged wheat crops there, but the likely crop losses has yet to result in any increased demand for U.S. wheat. Rather, China has reportedly increased wheat purchases from Canada and Australia.