North American Grain and Oilseed Review: Canola partially regains steep losses

By Glen Hallick, MarketsFarm

WINNIPEG, May 14 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures finished higher on Friday, winning back a portion of the steep losses incurred on Thursday.

Much of canola’s recovery was due to strong gains in Chicago soyoil and European rapeseed.

A trader stated the longs were moving out of the July contract and rolling into November. He said the shorts were covering July for the time being, but looking to get out before delivery is due.

A stronger Canadian dollar tempered further gains in canola. The loonie was at 82.55 U.S. cents compared to Thursday’s close of 82.30.

The Canadian Grain Commission reported producer deliveries of canola were 241,300 tonnes for the week ended May 9. That’s a drop of 25.2 per cent from the previous week. Canola exports were down 12.8 per cent at 221,400 tonnes, and domestic usage slipped 6.6 per cent at 188,700 tonnes.

Alberta Agriculture reported seeding progress across the province reached 31.5 per cent complete as of May 11. That’s up from 13.5 per cent the previous week. Canola planting was at 13.7 per cent finished and far behind the seeding of cereals and pulses.

There were 20,392 contracts traded on Friday, which compares with Thursday when 22,575 contracts changed hands. Spreading accounted for 11,654 contracts traded.

Settlement prices are in Canadian dollars per metric tonne.

Price Change
Canola Jul 871.80 up 14.50
Nov 742.20 up 5.30
Jan 733.80 up 6.70
Mar 721.30 up 8.20

SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Friday, recovering a small portion of the large declines from yesterday.

There’s an unconfirmed rumour that a shipment of Brazil soybeans was heading to the United States as crushers sought supplies.

Datagro estimated that 15 per cent of the 2021/22 Brazil soybean crop has already been sold. At this time last year, about 28 per cent of the country’s 2020/21 crop had been sold.

River traffic on the Mississippi in Memphis, Tenn. resumed four days after it was halted. Earlier this week, a severe crack was discovered in the Hernando De Soto Bridge. Just before water traffic started moving again, about 60 vessels and approximately 1,000 barges were backed up.

CORN futures plummeted for a second day on Friday, as dismal old crop soybean export sales weighed on values.

The USDA reported a private sale of 1.36 million tonnes of corn to China. Delivery is to be during the 2021/22 marketing year.

Hot and dry weather continued to stress the safrinha corn crop in Brazil.

Argentine soy crusher Vicentin has undertaken negotiations with Viterra, Molinos Agro and Argentine co-operative ACA to sell them a majority share in the financially beleaguered business.

WHEAT futures were mixed on Friday, with Chicago higher, Kansas City unchanged and Minneapolis dipping slightly.

The U.S. Southern and Northern Plains are forecast to receive varying amounts of rain over the next week. The heavier amounts are expected in the south, while the north should see much smaller amounts.

France reported the condition of its soft wheat crop held at 79 per cent good to excellent.

SovEcon upped its forecast for Russia’s 2021/22 wheat crop to 81.7 million tonnes, for an increase of one million tonnes.

Ukraine estimated its total grain crop of 2021/22 is to reach 75 million tonnes, for an increase of 10 million over last year.

Futures Prices as of May 14, 2021

Canola
Price Change
Milling Wheat
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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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