By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures continued lower at mid-session Friday, with the nearby March contract sliding below its C$600 per tonne support level.
Pressure on canola was coming from an upswing in producer deliveries, be they unpriced or fulfilling commitments, according to a trader.
The Canadian Grain Commission reported canola deliveries came to 442,900 tonnes for the week ended Jan. 28, which the trader said were the highest in 13 weeks.
Also, he pointed to canola’s lacklustre exports which also pressured the oilseed. The CGC reported year-to-date exports of 2.78 million tonnes compared to 4.29 million the same time last year.
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“There’s a decent line up of boats in Vancouver destined for China, but it’s a lot lower than they would be for this time of year,” the trader commented.
Weakness in the Chicago soy complex, European rapeseed and Malaysian palm oil also weighed on canola values. Declines in global crude oil prices applied more pressure on the oilseed markets.
By late-Friday morning the Canadian dollar retreated with the loonie at 74.33 U.S. cents compared to Thursday’s close of 74.60.
Approximately 34,150 canola contracts were traded as of 10:35 CST, with prices in Canadian dollars per metric tonne:
Price Change Canola Mar 595.00 dn 6.20 May 601.60 dn 6.80 Jul 606.20 dn 6.50 Nov 606.50 dn 6.00
