Chicago Close: Soybeans Up on Smaller Canada Canola Crop

Soybean futures ended higher Thursday, boosted in part by a downgraded Canadian canola production estimate. Wheat and corn also ended with gains. 

Statistics Canada today pegged the 2024 Canadian canola crop at 17.84 million tonnes, down more than 1 million from the agency’s September model-based estimate and 7% below a year earlier. The smaller canola crop sparked fears of tightening global vegoil supplies, which helped to rally soybean oil futures, strength that spilled over to soybeans. The soy market was further supported by the announcement of a private export sale of 136,000 tonnes to China. The weekly USDA weekly export sales report this morning showed bookings of US soybeans for the week ended Nov. 28 at 2.3 million tonnes, near the high end of trade guesses.  January beans gained a dime to $9.93 ¾, and new-crop November was up 6 ¼ cents to $10.07. 

Wheat rallied on a weaker American dollar and reports that Russia’s winter wheat crop went into the winter in unusually poor condition due to fall drought. More than one-third of the crop was in subpar condition or had failed to sprout at all, according to Russian officials. On the other side, StatsCan revised the size of the Canadian all wheat crop higher from September, up to just under 35 million tonnes, 6.1% above a year earlier and the largest since 2020. The weekly export sales report put bookings of US wheat at 378,232 tonnes, at the lower end of expectations. March Chicago and March Kansas City wheat each climbed 10 cents to close at $5.58 1/4 and $5.52 ½, respectively. March Minneapolis ended 9 cents higher at $5.98 ½. 

Corn rode the coattails of wheat and soybeans higher, although the gains were capped by the generally good growing conditions for crops in South America. Strong export demand boosted corn as well. The USDA’s weekly export sales report showed bookings of American corn for the week ending Nov. 28 at 1.7 million tonnes, above the range of trade guesses. March and December 2025 corn each closed a nickel higher at $4.35 and $4.34.