ICE Canola Midday: Prices getting a bounce
Canola market still a mess says trader
By Glen Hallick
Glacier Farm Media MarketsFarm – Although Intercontinental Exchange canola futures were on the rise Thursday, a trader stressed there was “nothing huge going on.”
The trader said canola is currently hard to gauge right now, not necessarily because of the Chinese situation, but rather Statistics Canada “has the numbers so screwed up on canola” following the Aug. 28 principal field crops report.
“These big revisions to previous crops show their crop assessment system is not functioning at all,” the trader stated, noting the canola numbers for 2023/24 as well as 2022/24 were raised.
The trader was also critical of the StatCan yield numbers for very likely being too high. He said a number of canola yields at this early point in the harvest are coming in lower than expected. He added that the StatCan stocks report for Monday will likely show larger stocks than previously anticipated.
“Now you throw in the Chinese situation, and you got a real mess in the canola market right now,” the trader commented, pointing out the Canadian oilseed was beginning to follow product values.
With that, Chicago soyoil, European rapeseed and Malaysian palm oil were making gains. Upticks in crude oil were lending additional support to the vegetable oils. Meanwhile some pressure was coming from declines in Chicago soybeans and soyoil.
The Canadian dollar was unchanged at late Thursday morning with the loonie at 73.94 U.S. cents.
Approximately 34,250 canola contracts were traded as of 10:46 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Nov 586.80 up 7.10 Jan 599.30 up 8.10 Mar 609.70 up 8.10 May 617.00 up 7.80
