By Glen Hallick, MarketsFarm
WINNIPEG, July 26 (MarketsFarm) – ICE Futures canola contracts were stronger at midday Friday, as a weaker Canadian dollar and firm Chicago soyoil prices have been providing support over the last 10 days, said a Winnipeg-based trader.
“It’s a combination of bean oil up a penny and the Canadian dollar down a penny that has pushed up canola product values by C$13 to C$14 a tonne over last week and a half,” he commented.
The trader said no one has been prepared to put out a crop estimate as it’s too difficult to gauge at this point.
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However, last week MarketsFarm estimated canola production this year to slip to 17.85 million tonnes, based on the crop’s slow growth and the threat of frost in September.
Agriculture and Agri-Food Canada called for 18.575 million tonnes in its July crop outlook report. That’s was down from its June projection of 18.90 million tonnes and 20.34 million tonnes in the 2018/19 crop year.
The trader said supplies still look to be comfortable, which will limit canola’s upside.
“Unless there’s a breakout in bean oil,” he said.
Approximately 5,100 canola contracts were traded as of 10:24 CDT.
Prices in Canadian dollars per metric tonne at 10:24 CDT:
Price Change
Canola Nov 450.40 up 1.50
Jan 457.80 up 1.60
Mar 465.10 up 1.70
May 470.40 up 1.50
