WINNIPEG, Aug. 29 (MarketsFarm) – Canola futures on the Intercontinental Exchange (ICE) were weaker at midday Monday, following the Statistics Canada production report.
The model-based principal field crop estimates placed canola production for 2022/23 at 19.5 million tonnes – a jump of 41.7 per cent compared to last year. Total wheat production was pegged at 34.6 million tonnes, soaring 55.1 per cent from 2021/22.
“Yields are still below what are record yields,” an analyst noted as crops continued to improve from last year’s drought.
The analyst said there’s skepticism in the trade as the data for the StatCan report is about a month old and doesn’t account for the heat in August that likely eroded some yields. He pointed out that the federal agency will only tweak their numbers come their next production on Sept. 14, adding the survey-based December report will have more accurate figures.
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Additional pressure on canola was coming from weakness in Chicago soybeans and soyoil, as well as European rapeseed. Some support was derived from increases in Chicago soymeal and the off session of Malaysian palm oil.
Global crude oil prices were on the rise, but the analyst said vegetable oils were essentially ignoring them.
The Canadian dollar was lower as the loonie slipped to 76.80 U.S. cents, compared to Friday’s close of 76.99.
Approximately 12,150 canola contracts were traded as of 10:36 CDT.
Prices in Canadian dollars per metric tonne at 10:36 CDT:
Price Change
Canola Nov 846.80 dn 9.00
Jan 852.70 dn 10.60
Mar 857.50 dn 11.10
May 857.60 dn 11.60
