ICE Canada Morning Comment: Canola slipping back
Pressure coming from lower comparable oils
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures turned lower on Friday morning, due to a lack of support from comparable oils.
Malaysian palm oil closed slightly lower and European rapeseed fell back, while the Chicago soy complex was mixed. Global crude oil prices turned around to edge higher, with some spillover going into the oilseeds.
As rain inundated much of southern Manitoba on Friday, the rest of the Prairies were forecast to remain dry. Coming out of the weekend, the entire region is expected to see very little, if any, precipitation as temperatures climb to above normal.
Saskatchewan Agriculture reported on Thursday that spring planting across the province was 56 per cent complete as of May 20, for a gain of 24 points. However, it’s also 20 points below the five-year average.
The Canadian Grain Commission said producer deliveries of canola for week ended May 19 were 254,800 tonnes, down a little from the previous week. Exports dropped by two-thirds at 105,800 tonnes while domestic usage was relatively steady at 231,100 tonnes.
An analyst noted the increases in European rapeseed prices have made canola much more competitive with improved exports across the Atlantic quite likely.
The Canadian dollar nudged up on Friday morning, with the loonie at 73.03 U.S. cents compared to Thursday’s close of 72.98.
Approximately 6,050 contracts had traded by 8:43 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola Jul 670.30 dn 1.70 Nov 691.30 dn 2.20 Jan 698.20 dn 2.30 Mar 706.10 dn 0.90
