ICE Canada Morning Comment: Canola continues to recede
Good crop prospects across Prairies
By Glen Hallick
Glacier Farm Media MarketsFarm – Canola futures on the Intercontinental Exchange remained lower on Tuesday morning as prospects for a good crop on the Prairies weighed on values.
Pressure on canola also came from declines in Chicago soybeans and soyoil, as well as Malaysian palm oil while European rapeseed was narrowly mixed. Small upticks in crude oil lent some support to the oilseeds.
While the November canola contract was slightly above its 100-day moving average it was far below its 200-day average.
Canola crush margins were firm with the November positions at C$122 to C$128 per tonne above the futures.
The United States Commodity Trading Commission reported the short position for ICE canola increased by about 18,000 contracts at just over 69,300.
The Canadian dollar dipped on Tuesday morning, with the loonie at 72.59 U.S. cents compared to Monday’s close of 72.65.
Approximately 8,500 contracts had traded by 8:31 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola Jul 619.30 dn 10.80 Nov 642.40 dn 9.90 Jan 649.10 dn 10.50 Mar 654.30 dn 10.40
