By Glen Hallick, MarketsFarm
Glacier FarmMedia – Intercontinental Exchange canola futures closed mostly higher on Monday, but the March contract dipped lower in choppy trading.
Trading volumes were less than normal as the United States markets were closed for Martin Luther King Jr. Day.
Support for canola continued to come from Friday’s Canada-China trade deal that’s to reduce tariffs on the China’s imports of canola seed and meal come March. Reuters reported China bought 60,000 tonnes of Canadian canola shortly after the deal was signed.
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The agreement raised the prospect of Canada could still achieve eight million tonnes of canola exports in 2025/26. Agriculture and Agri-Food Canada is set to provide updated monthly supply and demand estimates this week.
Canola received support from gains in Malaysian palm oil, but MATIF rapeseed was mostly lower. Crude oil was virtually unchanged, providing little direction to the oilseeds.
The March canola contract held above its 20- and 50-day moving averages and was close behind its 100-day average.
The Canadian dollar was higher on Monday afternoon with the loonie at 72.11 U.S. cents, compared to Friday’s close of 71.88.
There were 24,856 contracts traded on Monday, compared to 121,111 on Friday. Spreading accounted for 15,790 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change
Canola Mar 639.00 dn 0.50
May 649.80 up 0.80
Jul 655.70 up 1.00
Nov 650.40 up 1.30
The Chicago Board of Trade was closed on Monday for Martin Luther King Jr. Day. Activity is set to resume this evening.
The United States Drought Monitor said the overall drought area decreased in the Western Plains but expanded and intensified in the Central and Southern Plains.
Some Republican and Democrat U.S. lawmakers said they want to more than double the Trump administration’s US$12 billion aid program to the country’s farmers.
The South Dakota Corn Growers Association said it’s optimistic the U.S. Congress will approve year-round E15 ethanol.
Soybean planting in the Brazilian state of Mato Grosso was 6.7 per cent complete, said the Mato Grosso Institute of Agricultural Economics (IMEA). A year ago, planting around 1.4 per cent done.
Also, IMEA said the planting of the second corn crop in Mato Grasso was 2.8 per cent finished compared to almost zero a year ago.
The Rosario Board of Trade said there could be a 20 per cent increase in Argentina’s core corn growing region due to improved yield projections. This core region is now expected to produce 14.8 million tonnes of corn.
A Reuters poll said Malaysian palm oil futures in 2026 are likely to be about 2.6 per cent lower than last year due to Southeast Asia weather conditions, U.S. biofuel policies and the large South American soybean harvest.
Ukraine said Russia has exported more than two million tonnes of grain from its occupied Ukrainian territories.
Saudi Arabia purchased 907,000 tonnes of hard wheat to increase its strategic stocks.
