North American Grain and Oilseed Review: Canola futures add gains

Intercontinental Exchange canola futures added more gains on Tuesday, as the fund liquidation continued.

With today’s increases, an analyst said canola could test the C$700 per tonne mark. He also said that a canola harvest of 20 million tonnes remains possible despite heat damage to blooming canola and later planted fields.

Agriculture and Agri-Food Canada upped its call on 2024/25 canola production to 18.63 million tonnes from June’s estimate of 18.10 million. The report noted planted canola hectares expanded to 8.91 million from 8.66 million.

The November canola contract remained handily above its major moving averages, which added to its bullish tone.

Canola crush margins pulled back with the November positions falling to C$88 to C$94 per tonne above the futures.

Support for canola also came from gains in Chicago soybeans, but there were losses in soyoil and soymeal. While Malaysian palm oil was relatively steady, European rapeseed stepped back. Weakness in crude oil weighed on the vegetable oil complex.

The Canadian dollar was lower by mid-afternoon Tuesday with the loonie at 72.59 U.S. cents compared to Monday’s close of 72.70.

There were 59,999 contracts traded on Tuesday, compared to the 68,972 contracts that changed hands on Monday. Spreading accounted for 24,092 contracts traded.