By Glen Hallick, MarketsFarm
WINNIPEG, July 21 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were weaker on Wednesday morning, following the downward trend in Chicago soyoil. European rapeseed and Malaysian palm oil. However, there was some support coming from gains in Chicago soymeal, while soybeans were mixed.
There were scattered showers overnight in parts of Saskatchewan and Manitoba, bringing five to 15 millimeters of rain. Also, thunderstorms brought precipitation to northern Saskatchewan and the Peace River region on Tuesday. The forecast has called for more dry weather across the Prairies going through the weekend.
Agriculture and Agri-Food Canada (AAFC) released its monthly supply and demand report on Tuesday, which trimmed canola production by 0.8 per cent from the department’s June estimates at 19.89 million tonnes. Also, AAFC cut its projections for 2021/22 canola ending stocks from 750,000 tonnes to 700,000, further intensifying an already tight situation.
Manitoba Agriculture and Resource Development (MARD) issued its weekly crop report yesterday afternoon, which stressed the downgraded yields expected for canola, spring cereals and corn due to drought conditions.
The Canadian dollar was stronger this morning, with the loonie at 79.03 U.S. cents compared to Tuesday’s close of 78.55.
About 5,950 canola contracts had traded as of 8:35 CDT.
Prices in Canadian dollars per metric tonne at 8:35 CDT:
Canola Nov 896.10 dn 13.00
Jan 874.50 dn 16.90
Mar 855.60 dn 18.40
May 832.80 dn 20.00
Commodity Future Prices
Prices are in Canadian dollars per metric ton