North American Grain/Oilseed Review: Canola declines, most grains rise

Glacier FarmMedia MarketsFarm — The ICE Futures canola market was weaker on Thursday, returning to the downside as relatively favourable growing conditions and seasonal selling pressure weighed on values.

Seeding operations were nearly complete in Saskatchewan according to the weekly provincial report, with 78 per cent of the canola crop rated good-to-excellent.

European rapeseed and Chicago soyoil were higher. Malaysian palm oil was down, but crude oil was up despite a build in United States stockpiles.

At mid-afternoon, the Canadian dollar was down one-quarter of a U.S. cent compared to Wednesday’s close.

There were 64,580 canola contracts traded on Thursday, which compares with Wednesday when 78,233 contracts changed hands. Spreading accounted for 43,626 of the contracts traded.

CORN contracts at the Chicago Board of Trade (CBOT) moved higher for the second session in a row hitting two-week highs in many months.

The United States Department of Agriculture (USDA) reported 1.056 million tonnes of old crop corn were sold for shipment during the week ended June 6, down 11 per cent from the week before but up 16 per cent from the four-week average. In addition, 69,500 tonnes of new crop corn were also sold, mostly to Mexico.

The U.S. Energy Information Administration showed an average of 1.023 million barrels of ethanol produced per day during the week ended June 7, down 49,000 from the week before. Stocks were up 170,000 barrels at 23.222 million.

Conab raised its Brazilian corn production forecast by 2.1 million tonnes at 114.1 million.

The Rosario Grain Exchange kept its estimate for Argentine corn production at 47.5 million tonnes.

Mexican corn production is expected to decline nine per cent to 25.15 million tonnes this season compared to last due to severe drought, according to government estimates.

The July SOYBEAN contract closed at its highest level in one week. However, it failed to reach the US$12 per bushel mark for the fourth consecutive session.

Export sales of old crop U.S. soybeans nearly doubled from the week before at 377,100 tonnes, with 3,000 tonnes of new crop also sold to Taiwan.

In addition, 143,300 tonnes of old crop U.S. soymeal were also sold, below trade expectations, as well as 27,100 tonnes of new crop.

Also, 14,600 tonnes of old crop U.S. soyoil were sold, above trade expectations, as well as 3,200 tonnes of new crop.

The USDA also reported a sale of 106,000 tonnes of old crop soybeans to China on Wednesday, following a similar sale on Tuesday.

Conab cut its Brazilian soybean production forecast by less than one million tonnes at 147.35 million.

July Minneapolis spring and Kansas City hard red WHEAT contracts declined for the second straight day, with the latter hitting its lowest level since May 2. Chicago soft wheat was positive for the second time in three days.

In total, 223,900 tonnes of new crop U.S. wheat were sold for export, below trade expectations, while 115,300 tonnes were carried over from the previous marketing year.

In its June World Agricultural Supply/Demand Estimates released on Wednesday, the USDA projected Canada to produce 34 million tonnes of wheat in 2024-25, with ending stocks reduced by 500,000 tonnes at 2.62 million.

Strategie Grain lowered its European Union soft wheat production estimate by 1.7 million tonnes at 121.8 million, the lowest in three years.

Japan bought 109,100 tonnes of milling wheat, including 24,200 tonnes from Canada.

The Rosario Grain Exchange projected a potential record wheat harvest of 21 million tonnes for Argentina.