ICE canola correcting higher to start week

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was holding onto small gains at midday Monday, seeing a continuation of last week’s correction off nearby lows.

“The fundamentals on canola look good,” said an analyst pointing to tightening supply projections and solid end user demand. Statistics Canada releases updated production estimates on Thursday Dec. 5, with most market participants expecting the crop will be revised down by a million tonnes or more from the 18.98 million tonnes forecast in September.

Gains in European rapeseed and Malaysian palm oil provided spillover support, although the Chicago soy complex was weaker.

Australia’s ABARES estimated the country’s canola crop at 5.6 million tonnes. That was up by 100,000 tonnes from the September forecast, but still down eight per cent on the year.

An estimated 36,000 canola contracts traded as of 10:41 CST.

Prices in Canadian dollars per metric tonne at 10:41 CST:

Canola            Jan   580.00    up  5.90

Mar   592.00    up  6.10

May   601.40    up  5.20

Jul   603.30    up  3.70