Cereals and oilseeds review

In June, Chicago soybean futures' prices rallied over most of the month amid volatility driven by weather forecasts and drought concerns in the eastern US Corn Belt. Providing underlying support were concerns over Asian rust, soybean aphids and prospects for reduced official seeded acreage. Corn futures' prices increased, sparked by dryness in the Midwest, weather forecasts and spillover gains from soybeans. Then, in the last few days of the month, soybean and corn prices dropped, wiping out previous price gains.

In Winnipeg, canola futures' prices increased over most of the month, buoyed by the soybean rally. Canola prices lost a few dollars a tonne following the release of the seeded area estimate. Bearish pressure then eased due to uncertainty over the extent of any abandonment in the eastern Prairies. Traders nonetheless felt that favourable growing conditions in Alberta and Saskatchewan would produce a substantial canola crop. The good crop outlook, combined with the sharp drop in soybean futures' prices during the last three trading days of the month, resulted in canola futures' prices losing earlier gains.

The data from the May issue of the Cereals and Oilseeds Review are now available. The information includes data on production, stocks, prices, domestic processing, exports, farmers' deliveries, and supply-disposition analyses.

The June situation report, an overview of current market conditions, both domestic and international, is also included in the May issue of Cereals and Oilseeds Review (22-007-XIB, $12/$120) will soon be available.

For general information, contact Client Services (1-800-465-1991; agriculture@statcan.gc.ca). To enquire about the concepts, methods or data quality of this release, contact Les Macartney (613-951-8714; les.macartney@statcan.gc.ca), Agriculture Division.