North American Grain and Oilseed Review: Canola rises ahead of long weekend

Canola futures on the Intercontinental Exchange (ICE) closed higher on Thursday, although they dipped lower prior to the end of the session.

Support for the Canadian oilseed came from sharp upticks in the Chicago soy complex plus increases in European rapeseed. Modest losses in Malaysian palm oil tempered further gains.

The strong rise in global crude oil prices has largely evaporated, attempting to cling to small increases. That’s reduced the amount of spillover going to vegetable oils.

The Labour Day long weekend weather outlook for the Prairies has called for warm to hot temperatures with no rain. That will allow for good harvest progress.

The Canadian Grain Commission reported producer deliveries of canola came to 121,600 tonnes, exports of 20,500 tonnes and with domestic usage of 64,900 tonnes.

The Canadian dollar was higher at mid-afternoon as the loonie climbed to 76.18 U.S. cents, compared to Thursday’s close 75.95.

There were 24,185 contracts traded on Friday, which compares with Thursday when 26,734 contracts changed hands. Spreading accounted for 15,976 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Nov 817.10 up 5.10
Jan 824.50 up 3.50
Mar 830.10 up 2.40
May 831.60 up 1.70

SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Friday, bouncing back from a week of trading lower.

The two-week weather outlook for the United States Midwest continued calling for above normal temperatures and little rain.

The Biden administration is looking to announce biofuel blending rates for three years, starting this November.

The U.S. markets will be closed on Sept. 5 for Labor Day, but trading will resume that evening.

StoneX revised its projection for U.S. soybean yields to 51.8 bushels per acre from 51.3.

Brazil reported its August soybean exports totaled 6.16 million tonnes, down from 6.48 million a year ago.

Ukraine reported its soybean and sunflower harvests have just begun.

South Korea tendered for 30,000 tonnes of non-GMO soybeans.

CORN futures were higher on Friday, due to spillover from soybeans and wheat.

StoneX cut its estimate of U.S. corn yields from 176 bu./ac. down to 173.2.

Brazil said its August corn exports were 7.55 million tonnes, jumping 74 per cent from the previous August.

France reported its corn was down two pints on the week at 45 per cent good to excellent.

Ukraine said its corn harvest is now underway.

Taiwan issued a tender for 65,000 tonnes of corn.

WHEAT futures were higher on Friday, also turning around for a week of trading lower.

The U.S. dollar hit a 20-year high yesterday and is a pinch lower today.

The Ukraine Agri Council projected the country’s winter grain plantings to be about half of the 20.8 million acres seeded last year. Of that, about three-quarters of it was winter wheat.

The Buenos Aires Grain Exchange said almost 24 per cent of Argentina’s wheat crop could be in poor condition and yields are very likely to be below average.

Tags: futures, сanola, corn, vegetable oils, Oilseed, soybean, wheat, rapeseed, palm oil