By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures continued to add to their gains on Friday morning, as a Prairie heatwave poses a threat to the crop. That saw the November contract break above its resistance level of C$650 per tonne.
A good amount of canola in the western half of the region was still blooming, a stage at which it has little tolerance for high temperatures. However, it’s believed the canola that’s beginning to pod should fare much better.
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Canola moved above its 20, 50 and 100-day moving averages while being a few dollars behind its 200-day average.
Also underpinning canola values were gains in the Chicago soy complex, Malaysian palm oil and European rapeseed. Meanwhile, slight declines in crude oil were trying to put a lid on further upticks in the oilseeds.
Canola crush margins continued to step back with its November positions losing C$13 to C$15 at C$97 to C$102 per tonne above the futures. Over the course of a week the November positions have retreated by C$44 to C$48.
The Canadian Grain Commission reported for the week ended July 14 an increase in producer deliveries of canola at 523,200 tonnes. Canola exports fell back to 170,800 tonnes and domestic use rose to 225,600 tonnes.
The Canadian dollar was weaker on Friday morning with the loonie dropping to 72.77 U.S. cents compared to Thursday’s close of 73.01.
Approximately 22,550 contracts had traded by 8:38 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola Nov 657.00 up 7.30 Jan 661.10 up 5.30 Mar 663.80 up 3.10 May 665.20 up 0.80
