North American grain/oilseed review: Canola up Wednesday despite soy losses

     Glacier FarmMedia — The ICE Futures canola market was stronger Wednesday, as tight old crop supplies and bullish chart signals underpinned the market.

The gains in canola came despite losses in the Chicago soy complex. European rapeseed was also weaker on the day, although crude oil and Malaysian palm oil were stronger.

The November canola contract held above its 20-day moving average, which was supportive from a technical standpoint with trendlines still pointed higher.

Statistics Canada will release updated seeded area estimates on Friday, with strength in the canola market since the last report was released in March expected to lead to an increase in canola area.

There were 60,102 contracts traded on Wednesday, which compares with Tuesday when 66,761 contracts changed hands. Spreading accounted for 28,152 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were weaker Wednesday, as ideal Midwestern growing conditions weighed on prices. Forecasts calling for warm and rainy weather should create a greenhouse-like effect, helping crops develop.

Positioning ahead of next week’s acreage estimates from the United States Department of Agriculture was a feature.

Gains in crude oil provided some support, helping temper the declines.

CORN fell to fresh contract lows, also pressured by the good U.S. growing weather and expectations for larger planted area in the upcoming acreage data.

Rising production estimates out of Brazil were another bearish influence on corn, as the harvest of the country’s second crop progresses.

WHEAT futures were lower Wednesday, as seasonal harvest pressure and a lack of major weather concerns continued to weigh on prices. The tentative ceasefire between Israel and Iran appeared to be holding, shifting attention in the markets back to the supply/demand fundamentals.

Consultancy Sovecon also raised their call on Russian wheat production in 2025 to 83 million tonnes.