By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 2 (MarketsFarm) – Intercontinental Exchange (ICE) futures canola contracts were higher Monday morning, getting support on gains in European rapeseed, Malaysian palm oil, as well as the Chicago soy complex.
However, canola has remained range-bound with traders unwilling to push bids too far either way. Meanwhile, the technical bias has turned to the downside for now.
MarketsFarm believes Australia’s 2019-20 canola production will continue to decline, and projected a crop of 1.9 million tonnes. The Australian Bureau of Agricultural and Resources economics (ABARE) estimated this year’s crop to be almost 2.1 million tonnes, down from the previous year’s 2.18 million tonnes and far short of the 3.89 million in 2017/18.
Improving conditions for soybean planting in Argentina and Brazil has weighed on values. There are expectations of record production, especially in Brazil.
The Canadian dollar was steady this morning at 75.20 U.S. cents after closing Friday at 75.25.
About 1,900 canola contracts had traded as of 8:35 CST.
Prices in Canadian dollars per metric ton at 8:35 CST:
Canola Jan 457.60 up 1.00
Mar 467.10 up 1.40
May 474.50 up 0.70
Jul 481.20 up 1.60