By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 17 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower at midday Friday, as declines in the Chicago soy complex weighed on values.
There had been support from European rapeseed, which hit new contract highs this week. However, it’s now mixed with gains only in the front month. Malaysian palm oil was on the downside as well.
A trader said canola was range-bound, staying within C$850 to C$900 per tonne. He also said a number of growers are selling their canola straight off the combines to the crushers.
The Canadian Grain Commission said producer deliveries of canola, for the week ended Sept. 12, jumped 75 per cent from the previous week at 685,900 tonnes. Domestic usage was up 5.5 per cent at 159,600 tonnes, while exports tumbled 82 per cent at only 13,700 tonnes. At six weeks into the 2021/22 crop year, total canola exports of 297,100 tonnes have dropped 75 per cent compared to this time last year.
The Prairie weather forecast has called for warm temperatures over the weekend, which will help with the remaining harvest.
Saskatchewan reported yesterday that its harvest of major crops was 74 per cent complete, with canola at 54 per cent finished. Alberta is scheduled to issue its crop report this afternoon.
The Canadian dollar was lower and supportive of canola. The loonie was at 78.49 U.S. cents compared to Thursday’s close of 78.90.
Approximately 9,650 canola contracts were traded as of 10:33 CDT.
Prices in Canadian dollars per metric tonne at 10:33 CDT:
Canola Nov 868.60 dn 6.90
Jan 860.90 dn 6.60
Mar 848.90 dn 5.50
May 831.50 dn 5.10