By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 26 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) were higher at midday Friday, with the largest increases in the front months.
While spillover from good gains in the Chicago soy complex provided support, declines in European rapeseed and Malaysian palm oil tempered those upticks. Small losses in global crude oil prices put some pressure on vegetable oils.
Analyst said the markets are set “to go back to being neutral” following comments made by United States Federal Reserve Chair Jerome Powell this morning. Powell indicated the Fed is likely to keep raising interest rates to combat inflation.
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The Canadian Grain Commission reported producer deliveries of canola for the week ended Aug. 21 were 123,100 tonnes, down from the previous week. Canola exports improved to 62,900 tonnes, while domestic usage eased back to 163,900 tonnes.
A good chunk of the Prairies is forecast to see rain either today or tomorrow, which will delay the region’s harvest. As temperatures remain warm next week, no precipitation is expected.
The Canadian dollar turned lower as the loonie backtracked to 76.92 U.S. cents, compared to Thursday’s close of 77.30.
Approximately 9,950 canola contracts were traded as of 10:26 CDT.
Prices in Canadian dollars per metric tonne at 10:26 CDT:
Price Change
Canola Nov 846.00 up 12.30
Jan 854.00 up 11.70
Mar 859.70 up 10.90
May 860.50 up 9.50
