ICE Canola Midday: Pushing higher
Gains from tight supplies, dry conditions
By Glen Hallick
Glacier Farm Media | MarketsFarm – Intercontinental Exchange canola futures were higher late Friday morning, as the Prairie weather forecast and tight old crop supplies provided support.
An analyst said there’s a risk premium in canola due to dry conditions over much of the region, while there’s skepticism over the weekend forecast.
“The trade needs to see this rain happen before they believe it,” the analyst said.
The Canadian Grain Commission reported year-to-date canola exports are about 8.81 million tonnes, compared to the 5.72 million a year ago. Last month, Agriculture and Agri-Food Canada upped its canola export estimate to 8.50 million tonnes and it scheduled today for its June report.
Canola was also getting support from upticks in the Chicago soy complex, Malaysian palm oil and European rapeseed. Declines in crude oil were limiting the gains in the vegetable oils.
At mid-session Friday, the Canadian dollar eased back as the loonie dipped to 72.82 U.S. cents compared to Thursday’s close of 72.87.
Approximately 34,650 canola contracts were traded as of 10:25 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Jul 750.60 up 5.30 Nov 749.20 up 5.20 Jan 756.60 up 4.30 Mar 760.80 up 2.90
