North American Grain and Oilseed Review: New crop canola makes small increase

Canola futures on the Intercontinental Exchange (ICE) witnessed slight gains in the new crop contracts on Tuesday, after pushing higher earlier in the session.

At times there was some convergence between the old July and new crop November contracts as the markets attempted to shed the rest of its inversion.

Global crude oil prices advanced, which aided the vegetable oil market. Increases in the Chicago soy complex as well as European rapeseed spilled over into canola. Small losses in the latest Malaysian palm oil prices tempered further increases.

The Prairie weather also weighed on canola values, due to the lack of any major concerns. Rain was forecast for parts of the western half of the region.

The Canadian dollar was slightly higher with the loonie at 77.69 U.S. cents, compared to Monday’s close of 77.60.

There were 22,636 contracts traded on Tuesday, which compares with Monday when 23,134 contracts changed hands. Spreading accounted for 14,086 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Jul 896.30 dn 4.80
Nov 890.60 up 1.20
Jan 897.30 up 1.70
Mar 904.30 up 2.30

WINNIPEG – SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Tuesday, benefitting from spillover from increases in crude oil prices.

The United States Department of Agriculture (USDA) issued its crop progress report and as of June 26 soybeans planted reached 98 per cent complete, up four on the week. At 65 per cent good to excellent, losing three points due to hot and dry conditions.

The USDA is scheduled to issue its quarterly stocks and planted acres reports on June 30 at 11 am CDT. That also marks the first notice day for July futures.

As well, the U.S. markets will be closed on Monday for Independence Day.

Indonesia will up its biofuel blend from B30 to B40 by the end of next month.

CORN futures were higher on Tuesday, gleaning support from soybeans and winter wheat.

The USDA pegged the corn crop at 67 per cent good to excellent, down three points from last week.

AgRural upped its call on 2021/22 corn production in Brazil by 1.3 per cent at 113.8 million tonnes, with the safrinha crop accounting for 80.3 million tonnes.

WHEAT futures were mixed on Tuesday, with spring wheat grinding lower.

The USDA placed the winter wheat harvest at 41 per cent finished, for a gain of 16 points. The crop held at 30 per cent good to excellent. Spring wheat remained at 59 per cent good to excellent.

Hot and dry conditions took another point off of France’s wheat crop, now at 64 per cent good to excellent. Over the last couple of months the crop has lost more than 20 points. The harvest was said to be two per cent complete.

The European Union estimated the 2022/23 Russian wheat crop at 88.8 million tonnes, and Kazakhstan at 14.2 million.

SovEcon projected the 2022/23 Ukrainian wheat crop to be 20.7 million tonnes, falling 35.7 per cent from the previous year.

Egypt purchased 180,000 tonnes of wheat from India.

Tags: palm oil, futures, сanola, corn, prices, soybean, wheat, rapeseed