By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 17 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were higher at midday Tuesday, as the charts show a bullish market, according to a trader.
“The funds are looking at the chart and the chart has turned dramatically bullish,” the trader stated. “The market is trying to come to grips with what’s the yield and how small is the crop going to be?”
Currently, several guesses have zeroed in around the 15 million to 17 million-tonne range, but at this point no one knows with any certainty how much canola Canada will produce this year. There have been some estimates pointing lower, around 12 million tonnes.
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“We know we’re way overpriced. The problem is, we don’t have enough eggs in the basket for everybody who wants to have an egg,” explained the trader.
The first indication of how far canola production has fallen won’t come until Aug. 30 when Statistics Canada is scheduled to issue its survey-based report on principal field crops.
While canola continued to climb, it was doing so in light of small decreases in Chicago soyoil and Malaysian palm oil. European rapeseed was mixed, with gains in the front months. There were also increases in Chicago soybeans and soymeal.
Additional support came from a lower Canadian dollar. The loonie was at 79.21 U.S. cents compared to Monday’s close of 79.56.
Approximately 8,550 canola contracts were traded as of 10:36 CDT.
Prices in Canadian dollars per metric tonne at 10:36 CDT:
Price Change
Canola Nov 923.60 up 11.20
Jan 907.70 up 9.50
Mar 890.40 up 9.70
May 869.10 up 8.40
