North American Grain/Oilseed Review: Canola continues higher Thursday

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The ICE Futures canola market posted solid gains on Thursday, seeing a continuation of Wednesday’s corrective bounce.

Chart-based speculative buying was a feature, with some stops likely hit as contracts moved back above some key technical levels.

Gains in Chicago soybeans and European rapeseed futures provided spillover support. However, soyoil and Malaysian palm oil held closer to unchanged.

Canada exported 672,000 tonnes of canola in March, according to monthly export data, with China the largest destination at 507,300 tonnes. Total canola exports through the 2023/24 marketing year-to-date came in at 4.071 million tonnes, which was well behind the 6.039 million tonnes moved by the same time the previous year.

There were an estimated 35,396 contracts traded on Thursday, which compares with Wednesday when 34,494 contracts traded. Spreading accounted for 13,776 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday, underpinned by chart-based buying and spillover from advances in soymeal.

Monthly crush data released Wednesday showed 203.7 million bushels of soybeans were processed in the United States in March. That marked a new record for the month but was still slightly bellow trade expectations.

Weekly U.S. soybean export sales of about 420,000 tonnes of old and new crop business combined were in line with trade estimates.

The Buenos Aires Grain Exchange cut their forecast on Argentina’s corn harvest by three million tonnes, to 46.5 million tonnes, citing insect damage and poor weather.

In Brazil, heavy rains in the state of Rio Grande do Sul were causing flooding and delays for the final third of the soybean harvest.

CORN was higher, as traders reacted to wet Midwestern forecasts that could cause some seeding delays.

In addition, hot and dry weather was reportedly stressing corn crops going through their pollination and filling stages in Brazil.

The U.S. Department of Agriculture reported weekly U.S. corn export sales of about 760,000 tonnes for delivery during the current marketing year and an additional 33,700 tonnes of new crop business.

WHEAT was higher across the board, with the escalating conflict between Russia and Ukraine providing some support given recent Russian missile strikes on Odessa.

Net cancellations of 20,300 tonnes of old crop U.S. wheat sales were more than countered by new crop business topping 400,000 tonnes.

Production concerns in several world wheat growing regions were being followed closely, with Russian wheat in need of more rain, while parts of Europe have seen too much moisture.