By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 28 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were higher at midday Monday as the latest rally in the Canadian oilseed was in its fourth session.
Canola was getting help from spillover in higher values for Chicago soybeans and soyoil, along with European rapeseed. Malaysian palm oil and Chicago soymeal were down a little, putting some pressure on further gains. Modest upticks in global crude oil prices lent support to the vegetable oils.
An analyst said the nearby November canola contract was pushing towards C$840 per tonne.
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“It’s really been grinding, it needs more support,” he stated.
The oilseed could get a boost on Tuesday with the release of the first crop production estimates for 2023/24 from Statistics Canada. Ahead of the model-based report the average trade guess pegged canola at 17.4 million tonnes, well down from the 18.8 million tonnes projected by Agriculture and Agri-Food Canada. The United States Department of Agriculture called for 19.0 million tonnes in its August report.
The Alberta crop report on Friday said the provincewide harvest of all crops was 11 per cent complete, with canola at one per cent finished. Also the canola rated 42 per cent good to excellent.
The Canadian dollar was relatively steady at mid-Monday morning, with the loonie nudging up to 73.53 U.S. cents compared to Friday’s close of 73.50.
Approximately 10,850 canola contracts were traded as of 10:32 CDT.
Prices in Canadian dollars per metric tonne at 10:32 CDT:
Price Change Canola Nov 815.60 up 4.30 Jan 821.90 up 3.40 Mar 825.40 up 4.40 May 824.00 up 4.50
