North American Grain and Oilseed Review: Canola lacks direction ahead of weekend

By Glen Hallick, MarketsFarm

WINNIPEG, May 29 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts traded either side of steady on Thursday, as a lower Canadian dollar was balanced off by little direction from edible oils.

The Canadian dollar was 72.55 U.S. cents at mid-afternoon compared to Thursday’s close of 72.65.

Chicago soyoil was virtually unchanged while European rapeseed was slightly higher and Malaysian palm oil was down a little.

The markets have continued to keep an eye on China should it take additional punitive measures against Canada. Wednesday’s court ruling that the extradition hearing for Huawei executive Meng Wanzhou will proceed angered the Chinese government.

In the Alberta weekly crop report, spring planting reach 79.6 per cent complete as of May 26. That’s almost on par with the five-average and about a 20-point gain from the previous week. Canola planting in the province stood at 74.2 per cent finished.

There were 15,544 contracts traded on Friday, which compares with Thursday when 14,439 contracts changed hands. Spreading accounted for 8,676 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Jul 461.10 up 0.40
Nov 470.00 dn 0.30
Jan 476.60 dn 0.50
Mar 482.10 dn 0.20

SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Friday, due to uncertainty over United States-China relations.

U.S. President Donald Trump is expected to announce what action the U.S. will take against China for its imposing of new national security laws on Hong Kong. The markets are concerned the growing tensions between the U.S. and China could lead to the Phase One trade deal falling apart. Today China announced it might not meet its obligation under the agreement to buy US$40 billion in agricultural products this year.

The U.S Department of Agriculture (USDA) reported export sales of old crop soybeans were 644,300 tonnes for the week ended May 21. That’s down 47 per cent from the previous week. New crop sales were 203,000 tonnes. Export sales of old crop soymeal amounted to 127,200 tonnes, down 36 per cent from last week. New crop sales came in at 44,700 tonnes. Soyoil export sales were 56,600 tonnes.

The USDA also announced a private sale of 132,000 tonnes of soybeans to China. Half is to be delivered in the current marketing year and the other half in 2020/21.

The Buenos Aires Grain Exchange (BAGE) pegged the Argentina soybean harvest at 97.2 per cent complete, with the expectation for 49.5 million tonnes.

CORN futures were lower on Friday, as weather conditions are forecast to improve over the weekend for most growing areas in the U.S.

Export sales of old crop corn were 427,200 tonnes, a drop of 52 per cent from the previous week. New crop sales were 46,500 tonnes.

The USDA reported a private sale of 101,600 tonnes of corn to unknown destinations, with delivery during the 2019/20 marketing year.

The grain traders’ union in Ukraine projected the country’s corn exports could top 30.0 million tonnes. That’s up 1.0 million tonnes from the union’s previous estimate.

BAGE reported the Argentina corn harvest is 47.0 per cent complete, which is 11 points ahead of the five-year average. The exchange is holding on its projection of 50.0 million tonnes of corn.

WHEAT futures were higher on Friday, building on gains made yesterday.

The USDA reported export sales of old crop wheat were 209,800 tonnes, and down 19 per cent from the previous week. New crop sales amounted to 496,500 tonnes.

The European Commission dropped its estimate for its wheat production by 3.4 per cent to 121.5 million tonnes and lowered export projections by 5.4 per cent to 26.5 million tonnes.

BAGE reported the planting of the Argentina wheat crop at 13.4 per cent complete. Farmers there facing dry conditions were reportedly seeding as quickly as possible.

Futures Prices as of May 29, 2020

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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