North American Grain and Oilseed Review: Canola closes a little above steady

Intercontinental Exchange (ICE) canola futures finished slightly higher on Monday after choppy trading that saw prices bounce back and forth of either side of steady.

There’s weakness in the Chicago soy complex as losses in global crude oil prices weighed on edible oils. Nevertheless, European rapeseed and the front months of Malaysian palm oil closed on the plus side.

A spring snowstorm is forecast to hit southern Manitoba by mid-week. The precipitation will provide added moisture to the soil.

The Canadian dollar was lower at mid-afternoon, with the loonie at 79.23 U.S. cents, compared to Friday’s close of 79.43.

There were 16,116 contracts traded on Monday, which compares with Friday when 13,809 contracts changed hands. Spreading accounted for 12,744 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola May 1,166.90 up 1.30
Jul 1,142.40 up 3.60
Nov 1,012.50 up 1.40
Jan 1,012.50 up 1.00

SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Monday, due to declines in global crude oil prices.

The United States Department of Agriculture issued its export inspections report for the week ended April 7. At 766,232 tonnes heading overseas, soybeans improved 3.4 per cent from the previous week. The year-to-date shipments now tally 44.94 million tonnes, but are 18.3 per cent behind inspections this time last year.

Continued dryness in Argentina and Brazil is posing a threat to their soybean and corn yields.

A trucker strike in Argentina began on Monday, just as the country’s soybean and corn harvests got underway. Truckers are demanding higher freight rates for grain and livestock.

WHEAT futures were stronger on Monday, as Russia prepares a new offensive in eastern Ukraine. Despite the peace efforts by the Austrian Chancellor Karl Nehammer, there’s very little hope of a resolution to the war.

Export inspections for U.S. wheat were 411,012 tonnes for a 29.1 per cent improvement over last week. The year-to-date reached 17.63 million tonnes and 17.8 per cent behind those from a year ago.

A Colorado low has been forecast to bring significant amounts of precipitation to parts of the U.S. Northern Plains this week. The system should help to alleviate the region’s dry conditions. Meanwhile, high temperatures and little, if any, precipitation will continue across the Southern Plains.

The USDA’s weekly crop progress report is scheduled to be released at 3 pm CDT. Ahead of the report, Futures International pegged U.S. winter wheat conditions to improve by one point at 31 per cent good to excellent. The progress of spring wheat planted is expected to triple to nine per cent seeded.

CORN futures turned lower on Monday after making gains earlier in the session.

The USDA announced a large private sale to China that’s comprised of 680,000 tonnes of old crop corn plus 340,000 tonnes of new crop corn.

The department reported export inspections of corn at 1.42 million tonnes, down 7.9 per cent from the week before. The year-to-date is just short of 32 million tonnes, 15.6 per cent behind those this time last year.

Futures International projected U.S. corn planted to double to four per cent in the ground.

Due to the Russian invasion, the markets are unable to zero in on the amount of corn Ukraine has been able to export. Prior to the war, Ukraine’s export capacity for all grains was six million tonnes per month. The Ukrainian grain traders union estimated current grain exports have plummeted 90 per cent.

The Western Producer

Tags: corn futures, rapeseed, palm oil, canola futures, edible oils, wheat futures, soybean futures