ICE Canada Morning Comment: Larger canola crops weigh on prices
Additional pressure from comparable oils
By Glen Hallick
Glacier Farm Media MarketsFarm – Canola futures on the Intercontinental Exchange stepped back on Wednesday morning, following the release of the Statistics Canada report on principal field crops.
StatCan raised canola output for 2023/24 to 19.19 million tonnes from 18.33 million. Also, federal agency pegged canola production for 2024/25 at 19.50 million tonnes compared to 18.63 million projected earlier this year. Ahead of the report, MarketsFarm estimated the crop to be 19.04 million tonnes.
Additional pressure on canola came from losses in the Chicago soy complex and European rapeseed, while Malaysian palm oil was narrowly mixed. A modest downturn in crude oil added more weight onto the oilseeds.
After the federal government imposed steep tariffs on electric vehicles from China as well as steel and aluminium, there are questions about whether China will retaliate against Canada, and if so, what action might that be? Some in the trade are concerned that canola exports could take a hit. Those shipments to China were nearly 4.48 million tonnes as of the end of June, according to the Canadian Grain Commission.
The Canadian dollar was a pinch softer on Wednesday morning with the loonie at 74.24 U.S. cents compared to Tuesday’s close of 74.29.
Approximately 10,850 contracts had traded by 8:44 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola Nov 594.00 dn 5.00 Jan 605.00 dn 4.30 Mar 612.50 dn 4.60 May 617.40 dn 4.10
