ICE Canada Morning Comment: Canola attempting to gain upward traction
Pressure from crude oil, Prairie harvest being felt
By Glen Hallick
Glacier Farm Media MarketsFarm – Canola futures on the Intercontinental Exchange were narrowly mixed on Friday morning, despite support from other vegetable oils.
Spillover was coming gains in the Chicago soy complex, European rapeseed and Malaysian palm oil. However, there’s pressure from losses in crude oil.
Pressure has started to be felt from the Prairie canola harvest, with Saskatchewan reporting that eight per cent of its canola has been combined. Manitoba said earlier this week that three per cent of its canola has been taken off the fields. Alberta is scheduled to issue its crop report this afternoon. Last week the province reported that less than one per cent of its canola had been harvested.
The November canola contract surpassed its 20 and 50-day moving averages but was still behind those for 100 and 200 days.
The Canadian Grain Commission said producer deliveries of canola for the week ended Aug. 25 slipped to 256,400 tonnes. Canola exports fell back to 166,700 tonnes as did domestic usage at 185,500 tonnes.
The Canadian dollar was fading on Friday morning with the loonie at 74.11 U.S. cents compared to Thursday’s close of 74.22.
The markets in Canada and the United States will be closed on Monday for Labour Day.
Approximately 11,900 contracts had traded by 8:40 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola Nov 619.70 up 0.20 Jan 629.00 dn 0.60 Mar 635.50 dn 0.20 May 640.40 up 1.00
