By Phil Franz-Warkentin, MarketsFarm

WINNIPEG, Dec. 3 (MarketsFarm) – ICE Futures canola contracts were holding onto small gains at midday Tuesday, seeing a modest correction after falling below nearby chart support on Monday.
However, losses in the outside equity markets, amid renewed concerns over United States trade policy following comments by President Donald Trump in Europe, kept some caution in the market.
Citing hot and dry weather conditions, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) lowered its estimate on the size of the country’s canola crop to 2.1 million tonnes, from 2.3 million in September. That’s down by only four per cent from the previous year, but is 35 per cent off the 10-year average.

Statistics Canada releases updated production estimates on Friday, and positioning ahead of the report should account for some activity over the next few days. After pegging the crop at 19.4 million tonnes in September, average trade guesses predict a final number closer to 20 million tonnes as yields beat expectations despite adverse harvest weather, according to a trader.
About 14,000 canola contracts traded as of 10:40 CST.

Prices in Canadian dollars per metric tonne at 10:40 CST:

Price Change
Canola Jan 452.90 up 0.80
Mar 462.10 up 0.80
May 470.20 up 0.70
Jul 476.50 up 0.80