ICE canola down despite weather concerns

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Published: September 9, 2014

By Phil Franz-Warkentin, Commodity News Service Canada

September 9, 2014

Winnipeg – ICE Canada canola contracts were weaker Tuesday morning, as losses in the outside oilseed markets weighed on the lightly traded futures despite mounting weather concerns in parts of the Prairies.

The US soybean crop was rated 72% good-to-excellent in the latest weekly USDA report, which contributed to expectations for record large soybean production in the country this year and weighed on the CBOT soy complex. Malaysian palm oil and European rapeseed futures were also down in overnight activity.

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However, while US crop conditions remain historically good, the same cannot be said in Western Canada. Cold temperatures and snowfall were leading to quality concerns in Alberta this week, with adverse weather also in the forecasts for Manitoba and Saskatchewan before conditions are forecast to turn warmer in the next week.

A weaker tone in the Canadian dollar helped underpin canola as well.

About 1,100 canola contracts had traded as of 8:49 CDT.

Milling wheat, durum, and barley futures were all untraded and unchanged, after seeing some price revisions following Monday’s close.

Prices in Canadian dollars per metric ton at 8:49 CDT:

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