North American Grain and Oilseed Review: Canola takes a step back

Intercontinental Exchange (ICE) canola futures closed lower on Wednesday, except for the gains in the very lightly-traded new crop May and July contracts.

Losses in the Chicago soy complex and European rapeseed contributed to the declines in canola. Decreases in global crude oil prices put pressure on edible oils.

Support came from gains in Malaysian palm oil, as well as canola’s ongoing supply issues.

Despite the step back in the Canadian oilseed today, an analyst said he expects it to continue grinding higher in the coming weeks.

At mid-afternoon, the Canadian dollar was higher with the loonie at 78.53 U.S. cents compared Tuesday’s close of 78.11.

There were 14,643 contracts traded on Wednesday, which compares with Tuesday when 17,078 contracts changed hands. Spreading accounted for 5,482 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola May 1,113.90 dn 5.80
Jul 1,087.40 dn 7.40
Nov 931.80 dn 3.10
Jan 931.20 dn 2.60

WHEAT futures at the Chicago Board of Trade (CBOT) slid back to their daily limits on Wednesday due to developments in the Russian invasion of Ukraine.

The prospect of a ceasefire in the Russia-Ukraine war has become more realistic, according Ukrainian President Volodymyr Zelensky. Some reports suggested a halt to the bloodshed and destruction could come as early as next week.

The weather outlook for the U.S. Southern Plains indicated a chance of rain over the next 10 days.

The European Union reported wheat exports were 19.1 million tonnes as of March 13, which made them slightly behind the same time last year.

SOYBEAN futures were lower on Wednesday as global crude oil prices were down slightly.

There have been indications that China might not import the 94 million tonnes of soybeans for 2021/22 as anticipated by the United States Department of Agriculture. However, those soybeans are now said to be cheapest on the global market with China looking to acquire old and new crop shipments.

Anec cut its projection for March soybean exports out of Brazil from 13.77 million tonnes down to 12.9 million.

CORN futures were weaker on Wednesday, following the losses in wheat and soybeans.

The U.S. Energy Information Administration reported ethanol production for the week ended March 11 decreased by 0.2 per cent at nearly 1.03 million barrels per day. The trade was expecting an production increase given the high cost of gasoline. Ethanol stocks on the week expanded by 674,000 barrels, reaching 25.95 million barrels, which made for the largest reserves in nearly two years.

The Western Producer

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