By Phil Franz-Warkentin, MarketsFarm
WINNIPEG–The ICE Futures canola market was lower Monday morning, retreating from earlier gains as spillover from the Chicago Board of Trade soy complex countered the supportive influence of Statistics Canada’s production estimates.
Using satellite imagery and model-based data, the government agency pegged the 2021/22 Canadian canola crop at 14.7 million tonnes, which would be well below the revised 19.5 million tonnes grown the previous year.
While the small crop was generally supportive, as demand will need to be rationed going forward, many analysts expect the actual production is even smaller and a ‘buy the rumour, sell the fact’ mentality put some pressure on the market.
Chicago Board of Trade soyoil futures were lower in early activity, while the Canadian dollar was firmer.
About 3,200 canola contracts had traded as of 8:46 CDT.
Prices in Canadian dollars per metric ton at 8:46 CDT:
Price Change
Canola Nov 910.20 dn 2.50
Jan 888.90 dn 1.20
Mar 859.20 dn 1.80
May 828.00 dn 1.80
