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North American grain/oilseed review: Canola corrects higher Thursday

| 2 min read

By Phil Franz-Warkentin

 

Glacier FarmMedia MarketsFarm — The ICE Futures canola market was stronger on Thursday, rising for the first time in six sessions amid ideas recent losses were overdone.

The March contract was back above C$600 per tonne, which was supportive from a chart standpoint. Tightening supply projections and solid end user demand also underpinned canola.

Agriculture and Agri-Food Canada released updated supply demand estimates cutting their call for canola ending stocks this marketing year by nearly a million tonnes — now at 1.25 million tonnes. That compares with the 2.75 million tonnes of canola carried forward from the previous year.

Gains in Chicago soybeans and soyoil provided additional spillover support. European rapeseed was also higher, while Malaysian palm oil was weaker.

There were an estimated 48,700 contracts traded on Thursday, which compares with Wednesday when 55,829 contracts traded. Spreading accounted for 23,824 of the contracts traded.

 

SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday, seeing a corrective bounce after falling to their lowest levels in four-years on Wednesday.

The United States Department of Agriculture reported weekly soybean export sales at 1.4 million tonnes, which was in line with trade expectations. Additional flash sales of 227,200 tonnes to unknown destinations also reported.

However, large Brazilian crop prospects and softening Chinese demand tempered the advances.

Uncertainty over U.S. biofuel policy also continued to overhang the soy market.

 

CORN futures held closer to settle with small gains in sympathy with soybeans.

Weekly U.S. corn export sales at 1.175 million tonnes were up 24 per cent on the week and in line with trade expectations.

 

WHEAT was weaker, hitting fresh lows in front month contracts.

Large harvests in Australia and Argentina continued to weigh on values, despite production concerns in Russia.

Weekly U.S. wheat export sales were solid at around 458,000 tonnes.

Agriculture and Agri-Food Canada forecast 2024/25 Canadian wheat ending stocks at 4.45 million tonnes, which was down by 150,000 tonnes from the November estimate and compares with the 4.615 million-tonne carryout from the previous year.