North American grain/oilseed review: Canola continues higher Tuesday

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm — The ICE Futures canola market was up for the fourth session in a row on Tuesday, as gains in world vegetable oil markets provided support.

Chicago soyoil recovered off nearby lows, while Malaysian palm oil hit fresh contract highs in overnight trade. European rapeseed was also stronger, with Canadian canola looking underpriced compared to its European counterpart.

Statistics Canada releases updated production estimates on Thursday, Dec. 5, with most market participants expecting a sizeable cut to canola production from the 18.98 million tonnes forecast in September.

Canola ran into resistance to the upside, finishing well off its session highs.

There were an estimated 43,132 contracts traded on Tuesday, which compares with Monday when 67,997 contracts traded. Spreading accounted for 25,226 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, seeing a chart-based correction after yesterday’s losses as gains in world vegetable oil markets provided support.

Monthly United States crush data released after Monday’s close showed a record 215.76 million bushels of soybeans were crushed in October, coming in well above trade expectations.

However, relatively favourable South American crop prospects and rising production estimates out of Brazil remained bearish.

CORN futures traded within a few cents of unchanged, with the bias lower at the close.

Ethanol producers in the U.S. used 460.49 million of bushels of corn in October to make the renewable fuel. That was down slightly from September but up three per cent from the same month a year ago.

WHEAT was mostly higher, although activity was choppy.

Russia announced it was cutting its wheat export quota to only 11 million tonnes from mid-February through June. That compares with 29 million tonnes during the same timeframe in 2024. Russian wheat export taxes are also being raised by 18 per cent starting Wednesday, which should shift more demand to the European Union.

Condition ratings for winter wheat in Kansas improved one point as the crop enters dormancy, now at 56 per cent good to excellent.