ICE canola boosted by smaller crop projection

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was stronger at midday Thursday, underpinned by declining production estimates.

Statistics Canada cut its call on the country’s 2024/25 canola crop by 1.1 million tonnes from September, pegging it at 17.8 million tonnes. That was below average trade guesses and compares with 19.2 million tonnes in 2023/24.

Gains in Chicago soyoil provided additional spillover support, with European rapeseed and Malaysian palm oil also up on the day.

However, reports Chinese buyers were scaling back purchases of Canadian canola due to concerns the government may soon impose anti-dumping duties tempered the upside. China has been the largest export destination for Canadian canola so far this marketing year, but much of that business was thought to be front-loaded.

An estimated 46,400 canola contracts traded as of 10:44 CST.

Prices in Canadian dollars per metric tonne at 10:44 CST:

Canola            Jan   593.60    up  15.40

Mar   604.00    up  14.50

May   613.10    up  12.70

Jul   616.00    up  11.30