ICE Canada Morning Comment: Canola firmly on upward path
November contract approaching C$600/tonne
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures continued their upward trend on Wednesday morning, amid speculation the November contract could return to C$600 per tonne.
The Canadian oilseed pushed above its 20-day moving average. However, November canola remained well back of other technical resistance levels.
Support was spilling over from gains in the Chicago soy complex and European rapeseed, along with sharp upticks in Malaysian palm oil. Softness in crude oil prices tempered further increases in the vegetable oils.
Canola crush margins eased back with the November positions between C$120 to C$127 per tonne above the futures.
Rain has been forecast today for parts of Saskatchewan and Manitoba, with Alberta to get precipitation towards the weekend.
Manitoba reported its harvest was 55 per cent complete overall with the province’s canola at 49 per cent finished. Depending on the region, yields for the oilseed were as little as 25 bushels per acre to as much as 65.
The Canadian dollar was slightly higher on Wednesday morning with the loonie at 73.64 U.S. cents compared to Tuesday’s close of 73.55.
Approximately 10,650 contracts traded by 8:39 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola Nov 588.40 up 14.00 Jan 600.70 up 13.30 Mar 612.70 up 13.60 May 620.90 up 13.30
