ICE Canola Down As Production Prospects Rise

By Phil Franz-Warkentin, Commodity News Service Canada

WINNIPEG, Sept. 17 – ICE Canada canola contracts were weaker Thursday morning, as rising crop prospects and losses in the CBOT soy complex put some pressure on values.
Statistics Canada released model-based crop estimates for the first time ever on Thursday. Using the new methodology, which combines satellite data, survey results, and other agro-climate information, the government agency is forecasting canola production for 2015 at 14.4 million tonnes. That’s over a million tonnes above the 13.3 million tonnes estimated using the conventional methods in an August report.

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Increased farmer selling in Western Canada, as harvest operations move forward, added to the softer tone. However, weather delays in some parts of the Prairies did remain somewhat supportive.
The US Federal Reserve is set to make an announcement on whether or not it will raise interest rates later in the day, which was expected to keep some caution in financial markets across the board – including commodities.
About 4,800 canola contracts had traded as of 9:00 CDT.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric ton at 9:00 CDT: