North American Grain and Oilseed Review: Canola finds strength to close mixed

Intercontinental Exchange (ICE) canola futures finished either side of steady on Thursday after a volatile session.

Pressure on canola came from sharp declines in the Chicago soy complex, as well as most Malaysian palm oil positions and the nearby May contract for European rapeseed. However rapeseed’s other contracts finished on the plus side.

Steep pull backs in global crude oil prices weighed on edible oil values.

Tight supplies and some uncertainty over spring planting continued to underpin canola values.

The Canadian dollar was slightly lower at mid-afternoon, with the loonie at 80.09 U.S. cents, compared to Wednesday’s close of 80.19.

There were 13,289 contracts traded on Thursday, which compares with Wednesday when 14,038 contracts changed hands. Spreading accounted for 6,840 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola May 1,130.40 dn 3.60
Jul 1,107.30 dn 3.40
Nov 962.90 up 1.60
Jan 962.70 up 1.50

SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Thursday, dropping hard after United States President Joe Biden announced the release one million barrels of oil per day from the country’s strategic reserves over the next six months.

The U.S. Department of Agriculture issued its prospective plantings and quarter grain stocks reports today. Their projection for planted U.S. soybean acres in 2022/23 is a record 90.96 million, up 4.3 per cent from last year. The country’s canola acres are to hold at about 2.16 million, with 81.5 per cent of the acres in North Dakota.

The USDA placed soybean stocks at 1.93 billion bushels as of March 1, for a jump of 24 per cent from the same time last year.

The department also released its export sales report for the week ended March 24. Old crop soybeans were nearly 1.31 million tonnes, while new crop came to 54,000 tonnes. Soymeal export sales tallied 103,000 tonnes of old crop, falling 61 per cent from the previous week, while new crop came in at 238,900 tonnes. Soyoil was 30,900 tonnes of old crop.

WHEAT futures were mixed on Thursday, following the release of the prospective plantings report.

The USDA pegged total wheat acres at 47.35 million, up 1.4 per cent from last year. Winter wheat acres were set at 34.2 million, up two per cent. Spring wheat acres are expected to drop 1.9 per cent at 11.2 million. Durum acres are to jump 17 per cent at 1.92 million.

At 1.02 billion bushels, U.S. wheat stocks fell 22 per cent from last March.

The department reported wheat exports sales were 95,000 tonnes of old crop and 81,300 tonnes of new crop.

In international purchases, Saudi Arabia issued a tender for 355,000 tonnes of wheat and Algeria acquired nearly 600,000 tonnes.

CORN futures were higher on Thursday, on the likelihood of less planted acres this year.

The USDA forecast corn acres to contract four per cent at 89.49 million.

Corn stocks were said to be 7.85 billion bushels, up two per cent from a year ago.

U.S. export sales of old crop corn were 636,900 tonnes, plus 286,800 tonnes of new crop.

The Western Producer

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