North American Grain and Oilseed Review: Old, new crops head in opposite directions

Intercontinental Exchange (ICE) canola futures remained mixed on Friday, with losses in the old crop contracts and gains in the new crop positions.

The Chicago soy complex saw a sudden and sharp upswing in soyoil shortly after the Biden administration asserted an attack on Ukraine by Russia could come at any moment. There were also increases in Chicago soybeans and soymeal, as well as European rapeseed and Malaysian palm oil.

A strong boost in global crude oil prices lent support to edible oil values.

A trader said spreaders or someone looking to push down canola were likely responsible for the declines in nearby canola positions.

The Canadian dollar was lower at mid-afternoon, with the loonie at 78.46 U.S. cents, compared to Thursday’s close of 78.85.

There were 26,928 contracts traded on Friday, which compares with Wednesday when 33,121 contracts changed hands. Spreading accounted for 19,940 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Mar 1,013.50 dn 6.30
May 1,000.60 dn 5.00
Jul 970.30 dn 8.40
Nov 848.30 up 3.40

SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Friday, following the announcement of private sales.

The United States Department of Agriculture (USDA) said there was a sale for 108,000 tonnes of soybeans to China, to be delivered during the 2022/23 marketing year. Another sale was for 30,000 tonnes of soyoil to unknown destinations, with delivery to be during the current marketing year.

China said it’s looking to boost its meat production by 15 per cent by 2025, bringing total annual output to 89 million tonnes.

The Rosario Grain Exchange (RGE) trimmed its call on Argentina’s soybean crop by 1.2 per cent at 40.5 million tonnes.

Paraguay announced it will import soybeans from Argentina for the first time.

CORN futures were higher as well on Friday, gleaning support from soybeans and wheat.

The USDA reported a private sale of 128,000 tonnes of corn to Japan, with delivery during the current marketing year.

The RGE is holding its projection of Argentina’s corn production at 48 million tonnes, due to dryness. Meanwhile, the Buenos Aires Grain Exchange (BAGE) cut its call on the country’s corn crop by 10.5 per cent, at 51 million tonnes, citing rain could still come.

WHEAT futures jumped towards the end of Friday’s session, shortly after the U.S. asserted that an invasion of Ukraine by Russia could now come at any moment.

The winter wheat growing areas in the U.S. Southern Plains are likely to miss any forecast rain this weekend. In Texas, winter wheat was at 70 per cent poor to very poor, up one point from last week.

IKAR said it’s projecting total Russian grain production in 2022 at 127 million tonnes, of which 65 per cent is to be wheat.

On the international market, Japan issued a tender for 80,000 tonnes of feed wheat and one for 100,000 tonnes of barley, while

Bangladesh is looking for 50,000 tonnes of wheat and Syria is calling for 200,000 tonnes of wheat.

The Western Producer

Tags: soybeans, soyoil, rapeseed, palm oil, canola futures, wheat futures, soymeal, soybean futures, corn futures