Sale to China has little effect on U.S. prices
By Glen Hallick, MarketsFarm
Glacier FarmMedia MarketsFarm – Intercontinental Exchange canola futures bumped up on Tuesday, largely due to a lack of farmer selling.
A trader said growers are presently more interested in selling their wheat and waiting to see if Canada and China reach a trade deal anytime soon, before selling their canola. China’s absence from Canadian canola exports looms over the market.
Additional support for canola came from strong gains in Chicago soyoil and Malaysian palm oil, while MATIF rapeseed was a pinch higher its nearby contracts. Crude oil has turned positive, with those increases spilling over in the vegetable oils. Meanwhile Chicago soybeans and soymeal pulled back.
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The January canola contract inched closer to its 100- and 200-day moving averages.
The Canadian dollar was higher on Tuesday afternoon with the loonie at 71.51 U.S. cents compared to Monday’s close of 71.25.
There were 44,575 contracts traded on Tuesday, compared to 50,485 on Monday. Spreading accounted for 23,656 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change
Canola Jan 656.40 up 1.20
Mar 668.60 up 1.90
May 678.20 up 2.90
Jul 683.40 up 3.30
SOYBEAN futures at the Chicago Board of Trade turned lower on Tuesday, despite a sizeable sale to China.
The United States Department of Agriculture announced that 792,000 tonnes of 2025/26 soybeans were sold to China. China’s total purchases of U.S. soybeans so far this crop year are slightly more than one million tonnes.
An analyst suggested that China buying 12 million tonnes of U.S. soybeans before Jan. 1, could be pushed back to the end of the 2025/26 marketing year, even with that being iffy.
The USDA reported that the country’s soybean harvest reached 95 per cent complete as of Nov. 16. That’s virtually on par with the five-year average while three points back this time last year.
Abiove placed Brazil’s forthcoming soybean crop at 177.70 million tonnes, down 800,000 from its previous call.
China received 30,000 tonnes of soymeal from Argentina. This was the first such shipment to China since it approved Argentine soymeal imports in 2019.
CORN futures were higher on Tuesday, as crude oil turned around to climb higher.
The U.S. corn harvest hit 91 per cent finished, three points ahead of the five-year average but seven behind the same time last year.
South Korea bought 65,000 tonnes of corn, most likely from the U.S.
WHEAT futures were mixed on Tuesday, with gains in Minneapolis and Chicago varieties, but declines in Kansas City.
Winter wheat planting in the U.S. was reported to be 92 per cent complete, three points behind the average pace and two back of a year ago. The crop rated 45 per cent good to excellent, down four points from last year.
A weather system encompassing parts of Minnesota, Michigan, Ohio and Kentucky is to drop a mix of snow and rain.
India projected its planted wheat area to expand five per cent from last year to a record 34.16 million hectares, due to above average rainfall.
