ICE Canada Morning Comment: Canola pulling back
Pressure coming from weaker Chicago soy complex
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were lower on Friday morning, following the Chicago soy complex to the downside.
Small losses in crude oil weighed on the vegetable oils, but European rapeseed and Malaysian palm oil were higher.
As fall officially starts on Sunday, Prairie temperatures are to turn cooler during the weekend. Rain is forecast today for parts of Saskatchewan and Alberta, while much of southern Manitoba recovers from recent heavy rains.
The November canola contract remained slightly below its 20-day moving average and well back of its other major resistance levels.
Canola crush margins swung upward, with the November positions rising to C$123 to C$132 per tonne above the futures.
The Canadian Grain Commission reported for the week ended Sept. 15, that producer deliveries of canola of 425,100 tonnes increased 38 percent from the previous week. Canola exports jumped by almost 79 per cent to 310,300 tonnes and domestic usage improved nearly 23 per cent to 207,900 tonnes.
The Canadian dollar was virtually unchanged on Friday morning with the loonie at 73.72 U.S. cents compared to Thursday’s close of 73.73.
Approximately 7,400 contracts were traded by 8:36 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola Nov 578.60 dn 4.00 Jan 589.90 dn 4.50 Mar 600.20 dn 5.40 May 608.80 dn 5.20
