North American grain/oilseed review: Canola corrects higher Tuesday

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was stronger on Tuesday, taking back some of Monday’s losses amid ideas those declines were overdone.

Gains in outside markets provided spillover support, with Chicago soyoil, European rapeseed, Malaysian palm oil and crude oil also higher.

Tight old crop supplies and production uncertainty for the new crop contributed to the gains in canola.

However, Monday’s sharp drop was damaging from a chart standpoint, and canola ran into resistance to the upside.

There were 50,401 contracts traded on Tuesday, which compares with Monday when 64,262 contracts changed hands. Spreading accounted for 22,996 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, as gains in soyoil on the back of rising energy markets provided support. However, relatively favourable weather for developing crops tempered the upside.

The U.S. soybean crop was rated 67 per cent good to excellent in the first estimate for the crop from the U.S. Department of Agriculture for the growing season and in line with trade expectations. Soybeans were 84 per cent seeded in the country, running four points ahead of average for this time of year, with emergence at 63 per cent.

Crush data released after Monday’s close topped trade estimates, with 202.4 million bushels of soybeans crushed in the U.S. in April. That was down 2.1 per cent from the previous month, but still up 14 per cent from April 2024.

CORN was also pressured by the good U.S. crop conditions, but managed to hold onto small gains at the close.

U.S. corn plantings were 93 per cent complete in the latest weekly report, with condition ratings improving one point at 69 per cent good to excellent.

Monthly crush data showed 425.8 million bushels of corn were crushed for ethanol production in the U.S. in April. While that was down six per cent from the previous month, it still marked a six-year high for April.

WHEAT futures were lower, as improving U.S. crop ratings countered support from the escalating conflict between Russia and Ukraine.

U.S. winter wheat improved to 52 per cent good to excellent from 50 per cent the previous week. Spring wheat was pegged at 50 per cent good to excellent, which was up five points.

Winter wheat was 83 per cent headed, with three per cent of the harvest already complete.