ICE Canola Midday: Prices Down Due to Weak Soy Complex

WINNIPEG--Intercontinental Exchange canola futures were lower midday Friday, as declines in the Chicago soy complex weighed on values.

There had been support from European rapeseed, which hit new contract highs this week. However, that market is now mixed with gains only in the front month. Malaysian palm oil was on the downside as well.

A trader said canola was range-bound, staying within C$850 to C$900 per metric ton. He also said a number of growers are selling their canola straight off the combines to the crushers.

The Canadian Grain Commission said producer deliveries of canola, for the week ended Sept. 12, jumped 75% from the previous week to 685,900 metric tons. Domestic usage was up 5.5% at 159,600 metric tons, while exports tumbled 82% to only 13,700 metric tons. At six weeks into the 2021/22 crop year, total canola exports of 297,100 metric tons have dropped 75% compared with this time last year.

The Prairie weather forecast has called for warm temperatures over the weekend, which will help with the remaining harvest. Saskatchewan reported Thursday that its harvest of major crops was 74% complete, with canola at 54% finished.

Alberta is scheduled to issue its crop report this afternoon.

The Canadian dollar was lower and supportive of canola. The loonie was at 78.49 U.S. cents compared with Thursday's close of 78.90.

Approximately 9,650 canola contracts were traded as of 11:33 a.m. EDT.

Prices in Canadian dollars per metric ton at 11:33 a.m. EDT:

              Price    Change

Canola   Nov  868.60  dn 6.90
         Jan  860.90  dn 6.60
         Mar  848.90  dn 5.50
         May  831.50  dn 5.10


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


  (END) Dow Jones Newswires
  09-17-21 1204ET
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