By Glen Hallick, MarketsFarm
WINNIPEG, Aug. 13 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were stronger at midday Friday, due to gains in comparable edible oils, as well as yesterday’s United States Department of Agriculture report.
There were significant upticks in the Chicago soy complex, as well as moderate to good gains in Malaysian palm oil and European rapeseed.
A trader said the USDA August supply and demand estimates placed Canadian canola production at about 16 million tonnes, based on average yields of 32.85 bushels per acre. He noted numerous trade guesses have been in the 15 million to 17 million-tonne range, but he questioned the yields needed for that.
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While the Manitoba and Saskatchewan weekly crop reports said no significant amounts of canola had yet to be harvested, the trader said there have been instances of single-digit yields. He believes the overall yield for the Prairies will likely be less than the USDA’s current estimate.
The Canadian dollar was slightly higher at midday, with the loonie at 79.96 U.S. cents compared to Thursday’s close of 79.87
Approximately 11,450 canola contracts were traded as of 10:44 CDT.
Prices in Canadian dollars per metric tonne at 10:44 CDT:
Price Change
Canola Nov 897.10 up 13.70
Jan 884.80 up 12.10
Mar 869.10 up 10.90
May 850.30 up 11.00
