ICE Canada Morning Comment: Canola losing grip on increases
Little support to underpin values
By Glen Hallick
Glacier Farm Media MarketsFarm – Overnight increases in Intercontinental Exchange canola futures were fading on Thursday morning due to a lack of support from comparable oils.
While gains in Malaysian palm oil spilled over into canola, there were declines in the Chicago soy complex and European rapeseed was mixed. Crude oil eased back, putting some pressure on the vegetable oils.
Canola continued to find support from last week’s Statistics Canada report in which the oilseed’s production was cut to 17.84 million tonnes. Strong exports and domestic use added to ideas that canola supplies are going to be very tight for the balance of the 2024/25 marketing year.
The Canadian dollar was lower on Thursday morning, with the loonie at 70.48 U.S. cents compared to Wednesday’s close of 70.65.
Approximately 16,850 contracts were traded by 8:40 CST and prices in Canadian dollars per metric tonne were:
Price Change Canola Jan 622.70 up 0.60 Mar 631.10 up 0.40 May 636.90 dn 0.10 Jul 638.80 dn 0.80
