By Glen Hallick, MarketsFarm
WINNIPEG, May 24 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures was trying to gain traction on Wednesday as there was spillover from gains in comparable oils. There were small gains in canola’s old crop July contract while the new crop positions were lower.
There were increases in the Chicago soy complex, European rapeseed and Malaysian palm oil. Upticks in global crude oil prices lent support to the vegetable oils.
However, an analyst pointed to the ongoing debt ceiling issue in the United States, which he said was putting pressure on the commodity and stock markets.
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“The brinksmanship will continue. I don’t think anyone has priced in that the United States government could default,” he commented.
The analyst also said pressure was coming from spring planting on the Prairies and the prospect of a good canola crop.
Agriculture and Agri-Food Canada (AAFC) issued its monthly supply and demand report, with 2023/24 production pegged at 18.4 million tonnes, dipping from 18.5 million last month. Canola ending stocks were forecast to be 600,000 tonnes, for a sharp drop from April’s estimate of 1.05 million.
The Canadian dollar was at 73.56 U.S. cents on late Wednesday morning.
Approximately 27,100 canola contracts were traded as of 10:35 CDT.
Prices in Canadian dollars per metric tonne at 10:35 CDT:
Price Change Canola Jul 703.80 up 2.20 Nov 664.40 dn 0.60 Jan 667.40 dn 1.50 Mar 670.20 dn 3.40
