ICE Canada Morning Comment: Climbing towards resistance
Canada poised to run out of canola
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were on the rise on Wednesday morning as a tightening supply situation pushed prices in the nearby contracts towards resistance at C$680 per tonne.
At the current rate of exports and domestic use, Canada is poised to run out of canola later this marketing year. However, there are some participants who suspect Statistics Canada could be approximately one million tonnes short on its 2024/25 production estimate, but those expectations won’t be verified for a number of months.
The July contract continued to hold well above its moving averages, adding to the bullish nature in canola futures.
Additional support came from modest gains in the Chicago soy complex and European rapeseed, but declines in Malaysian palm oil tempered the increases. Upticks in crude oil lent support to the vegetable oils.
The Canadian dollar was slightly higher on Wednesday morning, with the loonie at 71.84 U.S. cents compared to Tuesday’s close of 71.77.
Approximately 15,000 contracts were traded by 8:39 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola May 672.50 up 3.60 Jul 679.40 up 2.90 Nov 650.70 up 1.70 Jan 656.70 up 1.50
