By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 12 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) were pushing higher at midday Monday, in an attempt to close the gap with product values according to a trader.
The trader lamented the “obscene” crush margins for canola emphasizing, “there’s no logical explanation why they should be that wide.”
He said prices have so far improved by C$10 per tonne, but the crush margins are still up by about C$160.
“Gaining back $10 is just a small amount, but maybe it’s a sign that it’s starting to turn a bit,” the trader added, stating crush margins remain “very disadvantageous” for growers.
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As for yields so far this harvest, the trader said there have been very few reports of “big booming crops” while most are average at best. He estimated this year’s harvest is likely 18.5 million to 19 million tonnes at most. That picture he noted could be made cleared on Wednesday when Statistics Canada updates its production report.
Support for canola was being derived from gains in the Chicago soy complex, European rapeseed and Malaysian palm oil. Modest increases in global crude oil prices lent support to vegetable oils.
The United States Department of Agriculture is scheduled to publish its September supply and demand estimates at 11 am CDT today.
The Canadian dollar was higher as the loonie climbed to 77.06 U.S. cents, compared to Friday’s close of 76.72.
Prices in Canadian dollars per metric tonne at 10:46 CDT:
Price Change
Canola Nov 788.70 up 17.50
Jan 795.70 up 16.40
Mar 802.50 up 16.50
May 804.00 up 15.80
