North American Grain/Oilseed Review: Canola drops with outside markets

By Phil Franz-Warkentin, MarketsFarm

WINNIPEG, May 18 (MarketsFarm) – The ICE Futures canola market was sharply lower on Wednesday, with losses in most outside vegetable oil markets providing the catalyst for the selloff.

Chicago Board of Trade soyoil, Malaysian palm oil, and European rapeseed futures were all down on the day, with losses in crude oil and the equity markets bearish for the agricultural commodities in general.

Uncertainty over new crop canola production provided some underlying support, as ongoing rains continue to delay seeding in the eastern Prairies while the western Prairies remain in need of moisture.

Canadian Financial Close: Markets tumble on Trump comments

Glacier FarmMedia – The Canadian dollar showed no movement on Friday as it entered the Thanksgiving Day weekend lower than…

However, the precipitation delaying seeding in Manitoba and eastern Saskatchewan will be beneficial for the canola crop in the long run.

About 18,220 canola contracts traded on Wednesday, which compares with Tuesday when 17,968 contracts changed hands. Spreading accounted for 8,214 of the contracts traded.

WHEAT futures in the United States were weaker on Wednesday, seeing a profit-taking correction after rallying sharply higher earlier in the week.

The United Nations is reportedly trying to facilitate talks with Russia, Ukraine and other countries in an effort to restore grain movement out of the Black Sea region, as shipments are down sharply due to the war.

The move by India to limit wheat exports remained supportive, although its likely been factored into prices for the time being.

A crop tour of United States winter wheat growing regions was confirming concerns over the damage to yields caused by hot and dry growing conditions, providing underlying support.
Persistent seeding delays for spring wheat to the north also helped temper the declines in wheat.

SOYBEANS were pressured by the broad selling in the outside markets and a general ‘risk off’ sentiment.

Ideas that U.S. soybean growing regions are generally in good shape, despite the slow pace of spring seeding, also weighed on values.

Solid export demand provided some support, with the U.S. Department of Agriculture announcing private export sales of 229,200 tonnes of soybeans to unknown destinations – most for delivery during the 2022/23 marketing year.

CORN was down in sympathy with wheat and soybeans.

Weekly U.S. ethanol data showed production of the renewable fuel held steady at 991,000 barrels per day. Stocks tightened slightly, to 23.79 million barrels.