ICE Canada Morning Comment: More increases for canola
Rain in Prairie forecast
By Glen Hallick
Glacier Farm Media MarketsFarm – Canola futures on the Intercontinental Exchange continued upward on Tuesday morning, building on Monday’s sharp gains.
Canola was drawing support from upticks in Chicago soybeans and soyoil, along with European rapeseed. Losses in Malaysian palm oil and Chicago soymeal applied pressure on the Canadian oilseed. Small increases in crude oil spilled over into the vegetable oils.
There’s rain today over parts of Manitoba and Saskatchewan, with more forecast tomorrow for Saskatchewan and Alberta, slowing the Prairie harvest.
The downward adjustment in canola production that Statistics Canada made in yesterday’s principal field crop report was helping to underpinned values.
Canola crush margins lost about C$20 with the November positions sliding to C$122-C$128 per tonne above the futures.
The Canadian dollar was relatively steady on Tuesday morning with the loonie at 73.53 U.S. cents compared to Monday’s close of 73.57.
Approximately 6,900 contracts traded by 8:35 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola Nov 573.50 up 8.80 Jan 586.90 up 8.60 Mar 598.70 up 8.00 May 606.70 up 6.90
