North American Grain and Oilseed Review: Canola nudges higher after volatile day

U.S. soybeans, corn, wheat pull back

By Glen Hallick, MarketsFarm

WINNIPEG, March 1 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished slightly higher on Monday, after a volatile session highlighted by wide swings.

There was some support that came from gains in European rapeseed, while declines in the Chicago soy complex and Malaysian palm oil weighed on values.

Tightening canola supplies continued to underpin values.

At mid-afternoon, the Canadian dollar was higher at 79.01 U.S. cents, after closing Friday at 78.83.

There were 14,708 contracts traded on Monday, which compares with Friday when 36,585 contracts changed hands. Spreading accounted for 6,744 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola May 739.40 up 0.20
Jul 705.30 up 0.50
Nov 596.00 up 0.50
Jan 598.80 up 0.50

SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Monday, as they kept pulling back following the release of the United States Department (USDA) export inspections report.

The USDA said export inspections of soybeans were nearly 1.64 million tonnes for the week ended Feb. 25. That put the year-to-date at almost 25.67 million tonnes and 76.3 per cent more than a year ago.

The slow progress in the Brazil soybean harvest and delays in shipping have continued to underpin values in the CBOT soy complex. The harvest is reportedly at 23 per cent complete, well back of the average pace of 35 per cent.

CORN futures were lower on Monday, pulling back after gains made in the overnight session.

The USDA said export inspections of corn were about 879,600 tonnes, which raised the year-to-date to 51.80 million tonnes, which is 80.7 per cent more than the same time last year.

With the slow soybean harvest in Brazil, the planting of the country’s Safrinha corn crop is also being delayed. Progress was reported at 25 per cent complete.

Dry conditions in Argentina could hamper the development of its corn crop, especially when it gets to the filling stage.

WHEAT futures were weaker on Monday, as a rising U.S. dollar weighed on values.

USDA wheat export inspections were just over 272,800 tonnes, bumping up the year-to-date to nearly 18.04 million tonnes. That’s down 4.3 per cent from a year ago.

Egypt, the world’s largest wheat importer, announced its wheat acres are to increase in 2021. However the country’s demand for wheat is not expected to decline.

Russia upped its export tax on wheat to 50 Euros (US$60.20) in its effort to stem rising domestic prices.

SovEcon estimated Russian exported about 3.1 million tonnes of wheat in February, up 12 per cent from January. Year-to-date wheat exports were 30.82 million tonnes, just over 30 per cent more from this point in 2020.

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Futures Prices as of March 1, 2021

Canola
Price Change
Milling Wheat
1970-01-01 00:00
Price Change
Durum
1970-01-01 00:00
Price Change
New Barley
1970-01-01 00:00
Price Change

Prices are in Canadian dollars per metric ton

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