ICE Canola Midday: Steep losses resume for Canadian oilseed
China situation weighing on values
By Glen Hallick
Glacier Farm Media MarketsFarm –Intercontinental Exchange canola futures were down sharply by late Friday morning, as the China situation regained its dominance in the market.
Earlier this week, China said it was planning an investigation into possible canola dumping by Canada, with the announcement sending futures spiraling downward.
Added to that were declines in Chicago soybeans and soyoil, plus losses in European rapeseed and Malaysian palm oil. Upticks in Chicago soymeal were attempting to stymie further decreases in canola. Crude oil was pulling back, placing more pressure on the oilseeds.
An analyst noted that while yields from the Prairie canola harvest have been less than anticipated, most of the combining has been in the region’s south. Yields could improve as the harvest moves further north, but the analyst said added it’s very unlikely they will exceed Statistics Canada projections.
Meanwhile, StatCan is set to release its stocks as of July 31 report on Monday morning. Average trade estimates placed canola stocks at about 2.93 million tonnes versus 1.51 million a year ago.
The Canadian Grain Commission reported producer deliveries of canola for the week ended Sept. 1 nudged up to 259,400 tonnes. Exports climbed to 175,000 tonnes on the week and domestic use of 187,000 tonnes was a pinch higher.
The Canadian dollar was lower by late Friday morning with the loonie at 73.80 U.S. cents compared to Thursday’s close of 74.00.
Approximately 18,900 canola contracts were traded as of 10:29 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Nov 569.90 dn 18.00 Jan 582.10 dn 17.80 Mar 593.63 dn 17.60 May 601.50 dn 17.00
