North American Grain/Oilseed Review: Canola climbs higher

The ICE Futures canola market was stronger on Tuesday, as activity resumed after the long weekend and the agricultural markets reacted to mounting tensions between Russia and Ukraine.

The Chicago soy complex, Malaysian palm oil and European rapeseed futures were all higher on the day, providing spillover support for the Canadian oilseed. Bullish chart signals were another supportive feature, with numerous canola contracts hitting fresh highs.

The tight old crop supply situation added to the firm tone, although demand is being rationed at current price levels and the new crop contracts lagged to the upside on expectations for improved production in 2022.

About 26,577 canola contracts traded on Tuesday, which compares with Friday when 14,629 contracts changed hands. Spreading accounted for 10,020 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade posted double-digit gains on Tuesday as Russia moved closer to a full scale invasion of Ukraine, and the threat of Western sanctions against Russia saw crude oil prices climb.

Good export demand added to the strength in soybeans. The United States Department of Agriculture reported private export sales this morning of 132,000 tonnes of soybeans to China.

Ongoing concerns over the state of the South American crop were also supportive, with heat and dryness during the growing season cutting into yield prospects despite recent rains that likely came as too little too late.

A strike by grain inspectors in Argentina could delay some soybean shipments from the country

Meanwhile, farmers in Brazil have harvested roughly a third of their soybean crop, up from 15 per cent at the same time a year ago, according to reports.

CORN was also caught up in the broad buying interest, with gains in crude oil supportive for the ethanol-linked grain.

Weekly U.S. corn export shipments of 1.6 million tonnes were up 8.3 per cent from the previous week, with China the top destination. However, seasonal corn exports to date, at 21.7 million tonnes , were still running slightly behind the year ago pace.

WHEAT posted large gains, with the biggest advances in the winter wheats.

The Russia/Ukraine situation remained at the forefront of the wheat market, as the two countries are major exporters.

The USDA reported flash export sales of 120,000 tonnes of hard red winter wheat to Nigeria this morning.

The Western Producer

Tags: futures, wheat futures, canola market, soybean futures, corn futures, rapeseed, palm oil