North American Grain/Oilseed Review: Canola up, grains decline

Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange ended the week on a positive note with the July contract surpassing the psychological C$720 per tonne level. However, gains were capped by a stronger Canadian dollar.

Chicago soyoil and Malaysian palm oil were higher while European rapeseed was down. Crude oil also made gains due to ongoing nuclear talks between the United States and Iran.

The Canadian Grain Commission reported 178,600 tonnes of canola were exported during the week ended May 18, compared to 130,000 the week before. With 11 weeks left in the 2024-25 marketing year, canola exports totaled 8.189 million tonnes compared to 5.135 million one year earlier. Domestic use totaled 244,000 tonnes for that week, with year-to-date use now at 9.271 million tonnes as opposed to 8.806 million last year.

At mid-afternoon, the loonie surged more than eight-tenths of a U.S. cent compared to Thursday’s close.

There were 32,804 canola contracts traded on Friday, which compares with Thursday when 36,696 contracts changed hands. Spreading accounted for 12,696 of the contracts traded.

With Memorial Day on Monday, there will be no trading on the Chicago Board of Trade until 7 p.m. CDT.

While Chicago and Kansas City WHEAT futures incurred losses on Friday ahead of rains in United States growing areas, those for Minneapolis wheat increased.

A band of rain to fall over parts of Oklahoma, Missouri, Arkansas and Kansas could bring 75 to 125 millimetres of precipitation from Saturday to Monday. Up to 40 mm of rain is possible for Nebraska.

The U.S. Department of Agriculture reported export sales commitments for wheat at 21.68 million tonnes as of May 15, 97 per cent of the USDA’s forecast. So far, new crop sales are at 4.18 million tonnes, the largest amount at this week since 2014.

FranceAgriMer said 71 per cent of the French soft wheat crop was rated good to excellent, down two points from the previous week.

Sources told Reuters that Russia has removed a minimum wheat price recommendation for traders until July 1, which was US$250 per tonne.

The Buenos Aires Grain Exchange reported 3.4 per cent of Argentina’s expected 2025-26 wheat acres were planted, down four points from the average due to severe flooding last week.

July CORN ended its rally on Friday as upcoming rains pressured prices.

Export commitments for old crop U.S. corn total 63.28 million tonnes, up 28 per cent from last year and 96 per cent of the USDA’s forecast.

SOYBEANS ended their four-day rally due to the coming rain, as well as weaker export demand and uncertainty over the 45Z Clean Fuel Production Credit.

The USDA reported 48.31 million tonnes in soybean export commitments, 13 per cent above the last year’s pace and 96 per cent of the USDA’s projection.

Clean Fuels Alliance America sent a letter to Environmental Protection Agency administrator Lee Zeldin asking for renewable volume obligations to be set at no less than 5.25 billion gallons in 2026, well above the amount committed by the EPA earlier this month.