ICE Canada Morning Comment: Canola slipping back
Good crop conditions across Prairies
By Glen Hallick
Glacier Farm Media MarketsFarm – Canola futures on the Intercontinental Exchange were lower on Friday morning, with the biggest declines in the old crop July contract.
Pressure on canola came from declines in the Chicago soy complex, although soyoil was virtually unchanged. Slight gains in European rapeseed lent some support while Malaysian palm oil was mixed. Modest increases in crude oil spilled over into the oilseeds.
Spring planting was nearing its end and good crop conditions weighed on canola values. Saskatchewan rated its canola at 78 per cent good to excellent. Alberta is set to issue its crop report this afternoon.
Rain is forecast for the Prairies during the weekend. Excessive moisture has become a bit of a problem in some low lying areas of the region.
Canola remained below its moving averages, which gave it a bearish tone. There were notable increases in the oilseed’s crush margins, with the November positions rising to C$134 to C$139 per tonne above the futures.
The Canadian dollar stepped back on Friday morning, with the loonie retreating to 72.58 U.S. cents compared to Thursday’s close of 72.75.
Approximately 7,150 contracts had traded by 8:36 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola Jul 622.30 dn 4.30 Nov 637.30 dn 2.60 Jan 643.80 dn 2.40 Mar 648.90 dn 1.30
