North American Grain/Oilseed Review: New crop canola, CBOT grains in green

Glacier FarmMedia | MarketsFarm – The July canola contract on the Intercontinental Exchange took a breather on Wednesday, while new crop positions continued their upward momentum.

Rain across the southern Prairies in the coming days will improve crop conditions, but they could also pressure prices. Weakening basis levels could also be an indicator of less commercial demand for the oilseed.

European rapeseed and Malaysian palm oil were lower, while Chicago soyoil was higher. Crude oil was down due to increased United States stockpiles, but a potential Israeli attack on Iran could raise prices in the near term.

At mid-afternoon, the loonie was up one-half of a U.S. dollar compared to Tuesday’s close.

There were 38,158 canola contracts traded on Wednesday, which compares with Tuesday when 47,983 contracts changed hands.   Spreading accounted for 18,280 of the contracts traded.

July SOYBEANS had their biggest gain in nine days on the Chicago Board of Trade on Wednesday as damage from floods in Argentina combined with a weaker United States dollar.

Exporter group ANEC estimated May Brazilian soybean exports at 14.52 million tonnes, 250,000 above its previous estimate.

Argentina’s export tax reduction on soybeans will expire at the end of June. Starting July 1, the rate will increase to 33 per cent, while products will be taxed at 31 per cent.

July CORN had its third straight gain, its longest rally since early April, and reached a two-week high.

The U.S. Energy Information Administration reported average daily ethanol production for the week ended May 16 was 1.036 million barrels per day, up 43,000 from the previous week. Ethanol stocks drew down 501,000 barrels at 24.944 million.

Agroconsult estimated Brazil’s safrinha corn crop at 112.9 million tonnes, compared to CONAB’s estimate of 99.8 million from last week.

Beginning July 1, Argentina’s export tax for corn will be raised from 9.5 per cent to 12 per cent.

Light rain was forecast for the next seven days with heavier amounts in the eastern U.S. Corn Belt and lighter amounts in Nebraska and Iowa.

July contracts for Chicago and Kansas City WHEAT all reached their highest levels for May on Wednesday.

SovEcon estimated the 2025 Russian wheat crop at 81 million tonnes, 1.3 million above the previous estimate but 1.6 million below the year before.

The European Union exported 18.45 million tonnes of wheat so far in the 2024-25 marketing year, down from 27.89 million the year before.

Unlike corn and soybeans, Argentina will extend its reduced export tax for wheat, 9.5 per cent, until March 31, 2026.