North American Grain and Oilseed Review: Moderate gains for canola

U.S. corn pulls back, as soybeans, wheat rise

By Glen Hallick, MarketsFarm

WINNIPEG, April 15 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were higher on Thursday, gleaning support from gains in other edible oils. This marked the third day of the rally in canola.

Chicago soyoil climbed two-thirds of cent per pound, European rapeseed saw strong increases in most of its active contracts, while Malaysian palm oil was up moderately.

Tight supplies continued to underpin old crop canola values, while new crop prices received support from persisting dry conditions across most of the Prairies. However, those new crop gains were tempered by the possibility of more canola being planted this spring than originally anticipated.

The May-July spread narrowed as investors booked profits, which stymied gains in all active months.

At mid-afternoon, the Canadian dollar was virtually unchanged with the loonie at 79.77, compared to Wednesday’s close of 79.79.
There were 22,049 contracts traded on Thursday, which compares with Wednesday when 24,477 contracts changed hands. Spreading accounted for 14,208 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola May 829.30 up 2.10
Jul 760.40 up 4.70
Nov 641.80 up 2.90
Jan 642.60 up 3.90

SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Thursday, despite declining export sales.

The United States Department of Agriculture (USDA) issued its weekly export sales report this morning. For the week ended April 8, old crop soybean export sales came in at 90,400 tonnes and new crop sales amounted to 265,500 tonnes.

The USDA reported old crop soymeal export sales dropped 44 per cent from the previous week to a marketing year low of 71,500 tonnes. New crop meal sales were 26,000 tonnes. Soyoil also fell to a marketing year low of a net reduction of 1,500 tonnes.

The National Oilseed Processors’ Association said the March soybean crush was a little short of 178 million bushels, below the average trade guess of 179.2 million. Soyoil stocks totaled 1.77 billion pounds, which was under market expectations of 1.82 billion.

CORN futures were lower on Thursday, as tensions rise between the U.S. and Russia.

Corn export sales saw a 57 per cent drop in old crop at 327,700 tonnes, while new crop sales were 52,600 tonnes.

Dry conditions have posed a threat to the second corn crop in Brazil, just as it’s beginning to develop.

WHEAT futures were higher on Thursday, due to dry and/or cold conditions in several wheat-growing countries.

Dryness across the U.S. Northern Plains will reportedly delay wheat planting by approximately a week. The Southern Plains will face below normal temperatures, with the possibility of frost damage to the region’s winter wheat crop.

There was a net reduction of 56,600 tonnes in old crop wheat export sales, while those for new crop were on the plus side at 274,400 tonnes.

Strategie Grain upped its projection of soft wheat exports outside of the European Union and the United Kingdom by one per cent at nearly 24 million tonnes. The consultancy kept its EU/UK production forecast at 129.6 million tonnes.

China announced there is a “severe situation” regarding stripe rust in the country’s wheat crop.

In international sales, the Philippines has tendered for 380,000 tonnes of feed wheat, while Japan purchased 90,169 tonnes of wheat from the U.S. and Canada

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Futures Prices as of April 15, 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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