North American Grain and Oilseed Review: New crop canola adds more increases

Intercontinental Exchange (ICE) canola futures finished mixed on Tuesday as the front months remained lower and the new crop contracts were higher.

Gains in the Chicago soy complex, European rapeseed and Malaysian palm oil provided support to canola. Strong upticks in global crude oil prices spilled over into edible oils.

Tight canola supplies continued to underpin values, even as eyes turn towards spring planting. The latter will be delayed somewhat by a major snowstorm set to strike southern Manitoba and parts of eastern Saskatchewan.

The Canadian dollar was lower at mid-afternoon, with the loonie at 79.12 U.S. cents, compared to Monday’s close of 79.23.

There were 18,672 contracts traded on Tuesday, which compares with Monday when 16,116 contracts changed hands. Spreading accounted for 13,200 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola May 1,157.60 dn 9.30
Jul 1,135.40 dn 7.00
Nov 1,018.70 up 6.20
Jan 1,019.10 up 6.60

SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Tuesday, due to sharp increases in global crude oil prices.

The weather outlook for the United States Southern Plains points to more warm temperatures with very little precipitation. Parts of the Northern Plains are expected to be hit by the same major snowstorm heading towards southern Manitoba.

Grain truckers in Argentina extended their strike to a second day, just as the country’s soybean and corn harvests get underway. Reports stated that port unloads were already down 80 per cent. The truckers are demanding higher freight rates due to rising inflation and fuel prices.

France said its planted rapeseed area is to expand by 18.4 per cent compared to last year at 2.87 million acres. However that would still be 6.7 per cent under the five-year average.

CORN futures were higher on Tuesday, ahead of the announcement by U.S. President Joe Biden to allow the year-round use of E-15 ethanol as a means to help curb rising fuel prices.

The U.S. Department of Agriculture issued its crop progress report yesterday afternoon, showing corn planted remained at two per cent finished. Also, the department reported topsoil moisture levels at 65 per cent adequate to surplus, up two points on the week. Subsoil moisture levels were up two as well, at 60 per cent adequate to surplus.

Following yesterday’s large sale of corn to China there are rumours in the market that China will make another sizeable purchase.

A report estimated there’s 100 grain vessels fully loaded in Ukrainian ports, unable to depart safely. The country’s grain traders union warned the corn harvest might only produce 23.1 million tonnes, 38.6 per cent less than in 2021/22.

WHEAT futures were stronger on Tuesday, after little improvement to U.S. winter wheat conditions.

The USDA pegged winter wheat at 32 per cent good to excellent, up two points from the previous week. However, that still marked the one of lowest rating in the last 20 years. Winter wheat headed was up one point to five per cent. Spring wheat planted doubled to six per cent finished.

India, the world’s largest wheat producer, will reportedly have a bumper crop of 111.32 million tonnes.

France reported that its wheat crop will be down in terms of area planted from last year by 3.9 per cent at 11.84 million acres. That would also be 0.7 per cent under the five-year average.

The Ukrainian grain traders forecast the country’s wheat crop to come to 18.2 million tonnes, falling almost 40 per cent from last year.

Egypt, the world’s largest importer of wheat, issued a wheat tender that reportedly will only consider bids from the European Union. Egypt normally buys large quantities from Russia and Ukraine.

The Western Producer

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