ICE Closing Review: Canola Up, But Well Off of Highs

WINNIPEG--Intercontinental Exchange canola futures were stronger Tuesday, but backed well away from earlier highs. At one point the November contract reached C$900.00 per metric ton.

Support came from the Statistics Canada production update, which lowered 2021/22 canola production from 14.7 million metric tons last month to 12.8 million metric tons. Compared to the previous year, the canola harvest is down more than 34%.

Spillover came from gains in Chicago soyoil, European rapeseed and Malaysian palm oil. Those increases were tempered by declines in Chicago soybeans and soymeal.

The Prairie weather forecast is conducive to the ongoing harvest, with daytime temperatures in the high teens to low 20 degrees Celsius. Scattered showers are expected for the northern parts of Alberta and Saskatchewan.

Manitoba is scheduled to issue its weekly crop report later this afternoon. Last week, the province-wide harvest of major crops was around 50% complete with the combining of canola at 32% done.

The Canadian dollar was lower, with the loonie at 78.85 U.S. cents, compared to Monday's close of 78.98.

There were 39,618 contracts traded on Tuesday, which compares with Monday, when 19,663 contracts changed hands. Spreading accounted for 26,554 contracts traded.

Settlement prices are in Canadian dollars per metric ton.

                Price     Change

Canola     Nov  872.30  up 10.60
           Jan  863.00  up 10.20
           Mar  849.90  up  8.90
           May  833.80  up  6.40


Spread trade prices are Canadian dollars and the volume represents the number of spreads:

         Months             Prices             Volume

         Nov/Jan   12.50 over to   8.50 over    6,321
         Nov/Mar   25.70 over to  21.60 over    1,620
         Nov/May   41.80 over to  36.00 over       22
         Nov/Jul   64.50 over to  54.60 over       18
         Nov/Nov  199.90 over to 181.50 over      149
         Jan/Mar   14.90 over to  10.60 over    3,018
         Jan/Jul   45.60 over                       5
         Mar/May   16.90 over to  13.40 over      751
         Mar/Jul   37.00 over                      25
         May/Jul   24.10 over to  19.10 over    1,163
         Jul/Nov  135.40 over to 116.70 over      185


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


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  09-14-21 1539ET
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