ICE Canada Morning Comment: Canola, soy on the rise ahead of S/D report
Pressure from other comparable oils
By Glen Hallick
Glacier Farm Media | MarketsFarm – Intercontinental Exchange canola futures were higher on Thursday morning, getting spillover from gains in the Chicago soy complex.
The increases in canola were tempered by declines in European rapeseed, while Malaysian palm oil was relatively steady. Crude oil was pulling back and putting pressure on the vegetable oils.
Canola will also get further guidance from the soy complex after today’s release of the June supply and demand report from the United States Department of Agriculture at 11 a.m. CDT.
Tight old crop supplies and lingering concerns over the new crop underpinned canola values. However, rain for the Prairies should provide some relief to dry conditions across the region.
The new crop November contract remained handily above its major moving averages, providing more support for canola.
The Canadian dollar was stronger on Thursday morning, with the loonie rising to 73.42 U.S. cents compared to Wednesday’s close of 73.18.
Approximately 16,300 contracts were traded by 8:39 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola Jul 722.30 up 8.00 Nov 702.80 up 8.90 Jan 709.50 up 8.20 Mar 715.10 up 7.90
