ICE Canola Futures Turn Lower After Overnight Gains

WINNIPEG, Manitoba--Intercontinental Exchange canola futures were slightly lower on Wednesday morning, as the Chicago soy complex was stepping away from its overnight highs, taking the Canadian oilseed with it. However, there was some support from increases in Malaysian palm oil and European rapeseed.

Statistics Canada released its report on grain stocks as of July 1, with canola total stocks for 2020/21 falling to 1.77 million metric tons, their lowest level since July 2017. That said, earlier expectations had been for the recent marketing year to close out at around 700,000 tons.

The Prairie forecast has called for harvest weather with temperatures in the mid to high 20 degrees Celsius. Rain for the region isn't expected until the weekend at earliest, particularly for Alberta.

Manitoba issued its weekly crop report on Tuesday, with the province-wide harvest of all crops at the halfway point. As of Sept. 6, the combining of canola jumped from 7% to 32% complete.

The Canadian dollar was lower this morning with the loonie at 78.91 U.S. cents compared to Tuesday's close of 79.23.

About 6,850 canola contracts had traded as of 9:41 EDT.

Prices in Canadian dollars per metric ton at 9:41 EDT:

                  Price   Change
Canola      Nov   878.00  dn 2.10
            Jan   863.00  dn 1.50
            Mar   844.40  dn 1.50
            May   823.40  dn 1.90

Source: Commodity News Service Canada, news@marketsfarm.com


  (END) Dow Jones Newswires
  09-08-21 1017ET
  Copyright (c) 2021 Dow Jones & Company, Inc.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.