North American Grain/Oilseed Review: Canola back above key moving averages

The ICE Futures canola market was stronger on Thursday, moving back above some key moving averages as gains in world vegetable oil markets provided support.

Both the nearby July contract and the new crop November contract settled above their 20-day moving averages, with the bullish chart signals keeping speculators on the buy side of the market.

Chicago soyoil, European rapeseed, and Malaysian palm oil futures were all stronger in sympathy with crude oil, which underpinned canola as well.

Concerns over Canadian production were also supportive, with persistent seeding delays due to excess moisture in the eastern Prairies and ongoing dryness issues in the west.

About 18,194 canola contracts traded on Thursday, which compares with Wednesday when 14,753 contracts changed hands. Spreading accounted for 8,344 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were higher on Wednesday, with the rally in world vegetable oil markets accounting for much of the strength.

Shifting weather forecasts now calling for wet conditions in the northern United States growing regions over the next week added to the gains, with seeding delays in Minnesota and the Dakotas pushing soybean plantings well past their normal time.

Weekly U.S. soybean export sales included about 277,000 tonnes for delivery during the current crop year and 443,000 tonnes of new crop business.

CORN was pressured lower by soft exports, with weekly U.S. corn export sales of only 210,000 tonnes of old and new crop business combined coming in well below trade estimates.

Weekly U.S. ethanol data showed production of the renewable fuel at just over a million barrels per day, hitting its highest level since March. Solid demand saw ethanol stocks tighten to 23.7 million barrels.

Dryness in Brazil provided some support, with the country’s second corn crop likely seeing some yield damage from the lack of moisture.

WHEAT ended mixed, with gains in Minneapolis spring wheat and losses in the winter wheats.

The slow pace of spring wheat seeding underpinned that market, with tightening world wheat supply projections also supportive.
Weekly wheat export sales data included net cancellations of 2,300 tonnes of old crop business while new crop sales came in at 246,000 tonnes.

Talk that Russia may allow a humanitarian corridor in the Black Sea for Ukrainian vessels carrying grain for export weighed on values.

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