ICE canola weaker ahead of USDA report

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The ICE Futures canola market was posting losses at midday Thursday, in thin and choppy activity as traders await updated supply/demand data from the United States Department of Agriculture.

Any surprises in the U.S. soybean production or usage numbers out at 11:00 CDT could spillover to provide direction for the canola market in the final hours of trade.

Chicago soybeans and soyoil were higher ahead of the report, although bearish chart signals kept canola under pressure. Seasonal harvest pressure and a lack of significant end user demand, despite canola looking cheap compared to most other oilseeds, also weighed on prices, according to an analyst.

An estimated 28,100 canola contracts traded as of 10:24 CDT.

Prices in Canadian dollars per metric tonne at 10:24 CDT:

Canola            Nov   566.80    dn  2.50

Jan   580.20    dn  2.30

Mar   592.70    dn  2.00

May   602.00    dn  1.70