North American Grain and Oilseed Review: Canola mostly higher at start of new marketing year

By Glen Hallick, MarketsFarm

WINNIPEG, Aug. 4 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were mixed on Tuesday after first day of the 2020/21 marketing year for canola and several other Canadian crops. The November contract was slightly lower and there was a firmer tone in the more deferred positions.

Coming off of the August long weekend, canola played catch-up with the Chicago soy complex, which had good gains on Monday. However, on Tuesday the complex lost ground. A trader speculated that if those gains held up today, there would have been a C$6 per tonne boost in canola prices.

Lower European rapeseed weighed on canola values, but there was strength from increased Malaysian palm oil.

As the Prairie harvest approaches canola is in generally good condition. However, areas with excessive moisture remain a supportive concern in the background.

By mid-afternoon the Canadian dollar was higher at 74.88 U.S. cents, compared to Friday’s close of 74.60.

The Canadian Grain Commission reported producer deliveries of canola ended Week 51 at 395,200 tonnes for a 16.5 per cent drop from the previous week. Canola exported climbed almost 24 per cent from week to week at 223,500 tonnes. Domestic usage fell 15 per cent at 160,300 tonnes.

There were 22,089 contracts traded on Tuesday, which compares with Friday when 17,103 contracts changed hands. Spreading accounted for 12,496 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Nov 490.80 dn 0.70
Jan 497.30 up 0.20
Mar 500.50 up 0.50
May 503.30 up 0.90

SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Tuesday due to the weekly crop progress report.

The United States Department of Agriculture reported soybean conditions improved by one point to 73 per cent good to excellent as of Aug. 2. However, parts of the U.S. are in need of rain, especially the western part of the Corn Belt.

There was a private sale of soybeans for 260,000 tonnes to unknown destinations. The vast majority of the purchase is scheduled to be delivered during the 2020/21 marketing year, with a small amount to be delivered before Sept. 1.

The USDA reported weekly export inspections of soybeans 551,000 tonnes, up 9.3 per cent from the previous week.

Brazil reported their July soybean exports hit 10.37 million tonnes. That’s a shade over 39 per cent more than the previous July.

CORN futures were lower on Tuesday, also due to U.S. crop conditions.

In the crop progress report, corn was unchanged at 72 per cent good to excellent.

Export inspections of corn were 716,000 tonnes, which was down approximately 14.75 per cent from the previous week.

Almost 379 million bushels of corn were processed for ethanol in June. The USDA said that was up 26 per cent from May, but 17 per cent lower than the previous June.

Brazil corn exports in July were 4.15 million tonnes, down almost 30 per cent from July 2019.

WHEAT futures were lower on Tuesday, following suit with corn and beans.

Spring wheat conditions picked up three points on the week to 73 per cent good to excellent condition. The spring wheat harvest reached five per cent complete, for a gain of four points on the week. The winter wheat harvest was at 85 per cent finished.

Wheat export inspections were 500,000 tonnes and down 8.1 per cent from the previous week.

Futures Prices as of August 4, 2020

Price Change
Milling Wheat
1970-01-01 00:00
Price Change
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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