North American Grain and Oilseed Review: Canola pulls back with edible oils

Intercontinental Exchange (ICE) canola futures fell back on Tuesday, due to weakness in comparable oils.

A sharp downturn in global crude prices weighed on the Chicago soy complex, European rapeseed and Malaysian palm oil.

Statistics Canada’s grain stocks as of Dec. 31 report helped to keep canola from going lower. The federal agency said combined on-farm and commercial canola stocks of 7.56 million tonnes fell by a little more than 43 per cent from a year ago.

The Canadian dollar was lower at mid-afternoon, with the loonie at 78.64 U.S. cents, compared to Monday’s close of 78.81.

There were 28,512 contracts traded on Tuesday, which compares with Monday when 28,301 contracts changed hands. Spreading accounted for 19,460 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Mar 1,022.80 dn 6.70
May 1,007.10 dn 11.30
Jul 980.70 dn 9.20
Nov 841.20 dn 5.00

SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Tuesday, as the easing of global tensions weakened crude oil prices.

Reports said there’s less likelihood of Russia starting a war with Ukraine and a deal was at hand between Iran and the United States regarding nuclear power and economic sanctions.

The U.S. Department of Agriculture reported two private sales of soybeans today. One is for 132,000 tonnes to China and the other is for 332,000 to unknown destinations. The delivery of both is to be during the 2022/23 marketing year.

USDA census data showed nearly 8.11 million tonnes of soybeans were exported during December. That’s down 22.3 per cent from the previous December. Soymeal exports were 1.27 million tonnes and soyoil came in at a three-year low of 82,852 tonnes.

The department is scheduled to publish its monthly supply and demand estimates on Wednesday at 11 am Central. Market expectations have called for a 10 million-tonne drop in South American soybean production.

CORN futures were higher on Tuesday, with gains in wheat proving to be a little bit more powerful than losses in soybeans.

The census reported December sorghum shipments of 748,074 tonnes, dried distillers grain shipments of 933,882 tonnes and ethanol exports of 117.93 million gallons.

The trade has forecast a four million-tonne decline in South American corn production in tomorrow’s S&D report.

In international sales, Turkey acquired 275,000 tonnes of corn, South Korea purchased 138,000 tonnes of feed corn and Taiwan bought 65,000 tonnes of corn.

WHEAT futures were stronger on Tuesday, due to lackluster crop conditions and tight Canadian stocks.

Winter wheat ratings for Texas were reported to be 71 per cent poor to very poor, with zero per cent excellent and only nine per cent good.

Statistics Canada reported all wheat stocks as of Dec. 31 were 15.56 million tonnes, down almost 38 per cent from a year ago and well below the five-year average of 24.89 million tonnes.

The USDA wheat census data included 1.34 million tonnes exported in December, down 30 per cent from a year ago.

The Western Producer

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