By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sept. 1 (MarketsFarm) – The ICE Futures canola market was weaker Wednesday morning, taking some direction from the Chicago soy complex as the Canadian oilseed remains overpriced.
Crush margins dipped to roughly C$25 per tonne below the nearby futures on Tuesday, marking a C$100 per tonne drop from both the month- and year-ago levels.
A firmer tone in the Canadian dollar also put some pressure on the canola market.
However, tight supplies and ideas that Canada’s canola crop will end up even smaller than the 14.7 million tonnes forecast by Statistics Canada earlier in the week provided some underlying support, as demand will need to be rationed going forward.
About 2,100 canola contracts had traded as of 8:45 CDT.
Prices in Canadian dollars per metric ton at 8:45 CDT:
Price Change
Canola Nov 887.10 dn 8.20
Jan 871.50 dn 8.90
Mar 851.50 dn 8.70
May 830.20 dn 8.00
