By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 31 (MarketsFarm) – The ICE Futures canola market was stronger Tuesday morning, seeing a correction to start the day amid ideas Monday’s losses were overdone.
The tight supply situation was also supportive, as traders continued to react to Monday’s production estimates from Statistics Canada. Canola production was estimated at 14.7 million tonnes, which would be down by 24 per cent on the year. However, with the harvest underway across the Prairies, anecdotal reports point to even smaller yields.
While the need to ration demand should keep canola well supported going forward, the oilseed is looking overpriced compared to other vegetable oils. Chicago Board of Trade soyoil futures were weaker Tuesday morning.
About 3,700 canola contracts had traded as of 8:38 CDT.
Prices in Canadian dollars per metric ton at 8:38 CDT:
Price Change
Canola Nov 908.20 up 6.60
Jan 888.00 up 4.50
Mar 861.90 up 2.70
May 833.00 up 1.90
