North American Grain/Oilseed Review: Canola, soybeans on the rise

Glacier FarmMedia MarketsFarm — The ICE Futures canola market consolidated its gains from Tuesday, receiving plenty of support from comparable oils.

Chicago soyoil, European rapeseed and Malaysian palm oil all showed sharp gains on Wednesday. Crude oil prices were slightly higher due to a 12 million-barrel weekly draw in United States stockpiles.

One analyst said that short-covering for soyoil and speculation of a possible trade war between Indonesia and China helped canola prices.

At mid-afternoon, the Canadian dollar was up one-third of a U.S. cent compared to Tuesday’s close, bringing pressure to canola prices.

There were 72,924 canola contracts traded on Wednesday, which compares with Tuesday when 66,536 contracts changed hands. Spreading accounted for 45,014 of the contracts traded.

SOYBEAN prices at the Chicago Board of Trade (CBOT) rose for the third consecutive session on Wednesday for the first time since May 20. Sharp gains in Chicago soyoil helped to lift the oilseed.

Indonesia has threatened to impose 200 per cent tariffs on Chinese goods, which may lead China to place retaliatory tariffs on palm oil.

United States soybean exports totaled 1.41 million tonnes in May, according to the U.S. Census, up 43 per cent from one year ago.

The U.S. Department of Agriculture’s (USDA) attaché in Brazil estimated the country’s soybean crop to be 150 million tonnes, three million short of the agency’s official estimate. The attaché also projected 160 million tonnes for Brazil’s 2024-25 crop, nine million less than the USDA’s projection.

The USDA announced the sale of 110,100 tonnes of soybeans this morning to unknown destinations, evenly split between old and new crop.

India’s palm oil imports rose to 788,000 tonnes in June, its highest level in six months due to higher demand.

The August CORN contract returned to the red on Wednesday after a positive respite the day before. Despite the decline, the price stayed above US$4 per bushel.

The U.S. Energy Information Administration (EIA) reported ethanol production for the week ended June 28 averaged 1.064 million barrels per day, a four-week high. Ethanol stocks were up 171,000 barrels at 23.594 million.

The U.S. exported 5.97 million tonnes of corn in May.

The majority of the U.S. Corn Belt will see favourable weather conditions over the next 10 days with little rain and mild temperatures.

AgroConsult raised its Brazilian safrinha corn production estimate by 3.8 million tonnes at 100.5 million. It also projected Brazil’s total crop at 126.5 million.

There are reports that Argentina will ship corn to China for the first time in 15 years.

Prices for all three major U.S. WHEAT varieties declined for the second-straight day.

There were 1.589 million tonnes of U.S. wheat exported in May, a three-year high for the month.

Japan’s ministry of agriculture is seeking 129,660 tonnes of wheat from Australia, Canada and the U.S. in its weekly tender with nearly 60,000 tonnes from the U.S.

Tunisia tendered for 100,000 tonnes of optional origin soft milling wheat.

The European Union reduced its Russian wheat production estimate to 82.5 million tonnes due to drought conditions.