By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 25 (MarketsFarm) – The ICE Futures canola market was stronger at midday Wednesday, as gains in Chicago Board of Trade soyoil and a softer tone in the Canadian dollar provided support.
That combination of rising soyoil and a weaker currency was helping underpin crush margins, which dipped into negative territory earlier this week.
A move above C$900 per tonne in the November contract was supportive from a chart standpoint, which contributed to the gains.
Uncertainty ahead of Statistics Canada’s production estimates, set for release on Monday, Aug. 30, kept some caution in the market. Traders generally expect to see a decline in canola production compared to the 18.7 million tonnes grown in 2020, but the extent of the reduction remains to be seen with estimates ranging from 11.5 million to 16 million tonnes.
About 10,800 canola contracts traded as of 10:45 CDT. Intermonth spreading was a feature, accounting for the bulk of the volume.
Prices in Canadian dollars per metric tonne at 10:45 CDT:
Price Change
Canola Nov 905.70 up 7.40
Jan 889.40 up 5.80
Mar 867.20 up 3.70
May 844.50 up 4.30
