By Glen Hallick, MarketsFarm
WINNIPEG, Feb. 10 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were on the upswing at midday Thursday, but encountered some resistance after touching new contract highs earlier.
Spillover from sharp gains in the Chicago soy complex and European rapeseed contributed to the increases. Stronger global crude oil prices helped to raise edible oil values. However, declines in Malaysian palm oil added pressure.
Much of the impetus for the uptick in oilseeds has been the decisive cut CONAB made to the Brazil soybean crop. The Brazil equivalent to the United States Department of Agriculture chopped 15 million tonnes from its call on the country’s 2021/22 crop, dropping it to 125.4 million tonnes.
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“The soybean pond is lifting all boats right now,” an analyst commented.
In contrast, the USDA pegged Brazil soybeans at 134 million tonnes in its supply and demand report yesterday. However, numerous private consultancies have lowered their estimates to the 120 million to 130 million-tonne range.
The Canadian dollar was higher, which placed some pressure on further gains for canola. The loonie climbed to 79.05 U.S. cents when compared to Wednesday’s close of 78.86.
Approximately 17,100 canola contracts were traded as of 10:29 CST.
Prices in Canadian dollars per metric tonne at 10:29 CST:
Price Change
Canola Mar 1,029.90 up 3.30
May 1,017.40 up 3.90
Jul 992.10 up 7.20
Nov 852.00 up 6.00
