By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures remained lower at midsession Friday, after resuming its downward trend following a one-day reprieve.
A broker commented the markets were in a wait-and-see mode until the United States Department of Agriculture released its July supply and demand estimates today at 11 am CDT. He said U.S. soybean yields will very likely be above 50 bushels per acre, providing a good harvest despite excessive rain in some growing areas.
Also, the broker said the Canadian Prairies appear to be set for a plentiful canola crop. However, he cautioned with farmers still spraying fungicide and a good deal of weather ahead, that it’s still rather early to be certain.
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He noted that growers very likely have a good amount of canola in their bins, waiting for improved prices. He warned that such are quite unlikely to materialize, especially with lackluster exports.
As canola backtracked, it was getting pressure from declines in the Chicago soy complex, European rapeseed and Malaysian palm oil. Modestly higher crude oil prices were trying to temper further losses in the vegetable oils.
The Canadian dollar was relatively steady at late Friday morning, with the loonie inching up to 73.44 U.S. cents compared to Thursday’s close of 73.40.
Approximately 15,500 canola contracts were traded as of 10:22 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Nov 616.00 dn 6.20 Jan 625.70 dn 5.40 Mar 633.90 dn 4.90 May 640.50 dn 4.60
