ICE Canada Morning Comment: Canola resumes sliding back
Weakness from other edible oils
By Glen Hallick
Glacier Farm Media MarketsFarm – Canola futures on the Intercontinental Exchange resumed their declines on Thursday morning, being pulled lower by losses in comparable oils.
Chicago soyoil, European rapeseed and Malaysian palm oil were to the downside. Upticks in Chicago soybeans and soymeal helped to stem further losses in canola. Crude oil turned around to bump up, which lent some support to the oilseeds.
The weather forecast calls for sporadic rain to continue across the Prairies through the weekend, with parts of northern Alberta getting some today.
Saskatchewan is scheduled to issue its weekly crop report later today. With spring planting at 94 per cent finished last week, the new report is very likely to show seeding as complete.
The November canola contract slipped below its 100-day moving average. Canola crush margins softened with the November positions approximately C$118 to C$123 per tonne above the futures.
The Canadian dollar lost ground on Thursday morning, with the loonie at 72.83 U.S. cents compared to Wednesday’s close of 72.99.
Approximately 13,950 contracts had traded by 8:42 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola Jul 620.30 dn 11.60 Nov 637.60 dn 10.80 Jan 644.40 dn 10.80 Mar 647.80 dn 11.10
