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North American Grain/Oilseed Review: Canola makes modest gains in heavy trade

By Glen Hallick, MarketsFarm

WINNIPEG, June 20 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were steady to stronger on Thursday, due to spillover from Chicago. However, forecasts of rain and a stronger Canadian dollar weighed on values.

Gains were made on the Chicago Board of Trade as trade talks between the United States and China will resume in the near future. The spillover was felt in the canola market.

Rain fell in parts of Alberta and Saskatchewan on Thursday. More precipitation has been forecast across the Prairies come the weekend. The rain won’t end dry conditions, but will provide a timely boost to struggling crops.

The Canadian dollar rose to 75.78 U.S. cents by mid-afternoon Thursday on increased crude oil prices.

Tensions rose in the Persian Gulf earlier today after Iran shot down an U.S. military drone Iran claimed the drone was over its airspace, while U.S. claimed the drone was over international waters. Fears of a wider confrontation boosted oil prices.

There were 34,483 contracts traded on Thursday, which compares with Wednesday when 25,312 contracts changed hands. Spreading accounted for 24,482 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Jul 455.80 up 0.30
Nov 469.70 up 0.40
Jan 476.90 up 1.00
Mar 482.70 up 1.10

SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Thursday, due to concerns about the weather and the coming resumption of U.S./China trade talks in the near future.

Soybean bids rose by 12 cents per bushel, while soyoil was up 0.22 of a cent and soymeal jumped US$6.10 per hundredweight.

The weather forecast has called for two inches or more rain over the U.S. Midwest and Plains. The thoroughly soaked region is likely to see acres go unplanted and reduced yields from crops struggling to grow.

Chinese President Xi Jinping and U.S. President Donald Trump spoke by phone on Wednesday, and agreed that trade talks will be restarted. Also, the presidents will discuss trade at next week’s G20 Summit in Japan.

Thursday’s export sales report from the U.S Department of Agriculture (USDA) said 772,000 tonnes of soybeans were sold. That was near the top of market expectations.

CORN futures were higher Thursday, on spillover from soybeans.

Prices climbed by eight to nine cents per bushel.

Corn export sales came in at 399,000 tonnes, according to the USDA. The sales were at the low end of market expectations.

An Iowa State University agriculture economist predicted U.S. corn yields could fall by 20 to 22 per cent this year. That would put the national average yield at 135 bushels per acre.

WHEAT futures were mixed on Thursday, with gains at Chicago of four to five cents per bushel and two to three cents at Kansas City wheat. Bids at Minneapolis futures lost about three cents per bushel.

Wheat exports sales were disappointing, as 188,000 tonnes were sold. That was 10,000 tonnes under the low end of expectations.

Ahead of Statistics Canada’s acreage production report, scheduled for June 26, a group of analysts pegged total wheat acres in Canada at 25.70 million acres, which would be relatively steady with April’s estimate 25.67 million and one million acres more than last year.

Commodity Future Prices

Canola
Price Change

Prices are in Canadian dollars per metric ton

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