ICE Canada Morning Comment: Canola pushing upward
Positioning ahead of tomorrow's USDA report
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were slightly higher on Monday morning.
The United States Department of Agriculture is scheduled to release its monthly supply and demand estimates tomorrow, with canola taking direction from pre-report positioning in the Chicago soy complex.
Along with tomorrow’s S&D estimates, will be the USDA’s world oilseed report. For the last few months, the USDA pegged Canadian canola production for 2024/25 at 20 million tonnes. Last week, Statistics Canada placed the oilseed’s output at 17.8 million tonnes, down 1.1 million from its previous estimate.
There was support coming from increases in Chicago soybeans and soymeal, while soyoil dipped lower. Gains in European rapeseed and Malaysian palm oil were moderate. Crude oil was stronger, with spillover underpinning the vegetable oils.
The January canola contract held above its 20-day moving average but remained below its other major averages.
Canola crush margins stepped back, with the January position at about C$128 per tonne above the futures.
The Canadian dollar was higher on Monday morning, with the loonie at 70.87 U.S. cents compared to Friday’s close of 70.74.
Approximately 16,000 contracts were traded by 8:40 CST and prices in Canadian dollars per metric tonne were:
Price Change Canola Jan 611.00 up 2.00 Mar 619.90 up 2.30 May 627.50 up 2.30 Jul 630.00 up 2.20
