North American Grain and Oilseed Review: Canola finishes week higher

By Glen Hallick, MarketsFarm

WINNIPEG, March 5 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were higher on Friday, benefitting from a sharp spike in Chicago soyoil.

A trader noted that the reduced increases in canola, compared to Thursday’s gains, could have been a sign of profit-taking ahead of the weekend.

Tight canola supplies remained supportive of values.

The Canadian Grain Commission reported year-to-date producer deliveries of canola were at 13.41 million tonnes, as of Feb. 28, and 14.2 per cent higher than those a year ago. Exports total 6.99 million tonnes and were 32 per cent more than the same time in 2019/20. Domestic usage amounted to 6.16 million tonnes and 2.2 per cent up on the previous year.

At mid-afternoon, the Canadian dollar was lower at 78.96, after closing Thursday at 79.13.

There were 22,051 contracts traded on Friday, which compares with Thursday when 30,638 contracts changed hands. Spreading accounted for 12,594 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola May 785.80 up 3.50
Jul 745.60 up 5.30
Nov 619.30 up 3.40
Jan 622.10 up 3.60

SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Friday, due to crop troubles in South America.

The soybean harvest in Brazil continued to struggle with wet conditions, while dry conditions were having a dire effect on Argentina’s soybean crop. The Buenos Aires Grain Exchange reported the country’s soybeans fell five points, to 10 per cent good to excellent, while 20 per cent was fair to poor.

Ahead of the next supply and demand report from the United States Department of Agriculture, expectations are for soybean ending stocks to be trimmed by about 90,000 tonnes. Global soybeans ending stocks are projected to drop 500,000 tonnes at 82.9 million.

The monthly census report from the USDA said January soybean shipments were 8.83 million tonnes, which marked a new record for the month. The year-to-date shipments were 49.53 million tonnes, with two-thirds exported to China.

CORN futures were stronger as well on Friday, on spillover from soybeans.

Expectations are for Tuesday’s supply and demand report to reduce U.S. corn ending stocks by 1.07 million tonnes and the world carryout by two million tonnes.

The USDA reported January corn shipments amounted to 5.81 million tonnes, which was the largest amount for January since the 1989/90 marketing year.

January ethanol exports came to 164.6 million gallons, with 85.9 million headed to China.

Rain continued to hamper corn planting in Brazil.

WHEAT futures were higher on Friday, although stronger U.S. dollar hampered further gains.

U.S. wheat ending stocks are projected to increase by more than 65,000 tonnes at 22.82 million come Tuesday’s USDA report. Global wheat ending stocks are expected to rise by 300,000 tonnes at 304.5 million.

January wheat shipments totaled 1.98 million tonnes with the year-to-date at 17.44 million tonnes.

Futures Prices as of March 5, 2021

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

Prices are in Canadian dollars per metric ton

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