North American Grain/Oilseed Review: Canola rallies, most grains negative

Glacier FarmMedia | MarketsFarm -– Canola futures on the Intercontinental Exchange advanced on Wednesday, deriving support from Chicago soyoil and crude oil.

Chicago soyoil was up while European rapeseed and Malaysian palm oil were down. Crude oil gained approximately US$2 per barrel due to a new trade deal struck between the United States and China.

However, forecasts calling for rains in Alberta tempered the advances.

At mid-afternoon, the Canadian dollar was up more than one-tenth of a U.S. cent compared to Tuesday’s close.

There were 32,738 canola contracts traded on Wednesday, which compares with Tuesday when 53,718 contracts changed hands. Spreading accounted for 33,902 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade declined ahead of forecasted rains for next week and the United States Department of Agriculture’s monthly supply/demand estimates to be released tomorrow.

The trade estimated old crop U.S. soybean ending stocks at an average of 351 million bushels, as well as 298 million bushels for new crop carryout. World ending stocks for 2025-26 were estimated at 124.54 million tonnes.

The trade also estimated 2025-26 Argentine soybean production at 49.04 million tonnes, with Brazil’s crop at 169.27 million.

U.S. and Chinese officials in London on Wednesday agreed to a framework for future negotiations as well as potential agreement allowing the U.S. access to Chinese rare metals. U.S. tariffs on Chinese goods were raised to 55 per cent, while Chinese tariffs on U.S. goods stayed put at 10 per cent.

July CORN was lower after another day of choppy trade, while staying above the multi-month low set on Tuesday.

Old crop U.S. corn carryout stocks were estimated at 1.392 billion bushels by the trade, as well as 1.792 billion for new crop carryout. Worldwide ending stocks for new crop corn were estimated at 278.80 million tonnes. The trade also trimmed its estimate for Argentine new crop corn production at 49.93 million tonnes, while Brazil’s increased to 131.68 million.

Average weekly ethanol production in the U.S. set a new record of 1.12 million barrels per day for the week ended June 6, said the Energy Information Administration. Ethanol stocks tightened by 706,000 barrels at 23.734 million.

Taiwan purchased 65,000 tonnes of corn from Brazil last night.

July Chicago soft and Kansas City hard red WHEAT contracts were slightly lower, while Minneapolis spring wheat showed modest gains.

Old crop U.S. wheat stocks were estimated by the trade at 842 million bushels, while new crop was pegged at 924 million. Global ending stocks for new crop wheat are expected to be 265.06 million tonnes.