ICE Canada Morning Comment: Canola Nudging a Little Higher

Intercontinental Exchange (ICE) canola futures were slightly higher on Friday morning, clinging on to gains made during the overnight session.

There was little direction from comparable oils as the Chicago soy complex was slightly lower, while European rapeseed was up a little bit and Malaysian palm oil was narrowly mixed.

The uncertainty over how much the 2021/22 crop will amount to has continued to underpin canola values. As are concerns that this summer's dry conditions could adversely affect next year's crop.

Saskatchewan reported yesterday that its harvest of major crops was at 89% done, with canola at 80% finished.

Alberta is scheduled to issue its weekly crop report this afternoon.

Prairie temperatures are forecast to cool off into the mid-teens degrees Celsius and then push into the low to mid- 20's through the weekend, with little rain for the region.

For the week ended Sept. 19, the Canadian Grain Commission reported canola exports were 90,100 tonnes, for a sharp improvement from last week's 13,700. However, after seven weeks into the 2021/22 marketing year, canola exports of 387,900 tonnes are down 71.5 per cent compared to this time last year.

The Canadian dollar was weaker this morning, with the loonie at 78.71 U.S. cents, compared to Thursday's close of 79.03.

About 2,450 canola contracts had traded as of 9:36 ET.

Prices in Canadian dollars per metric tonne at 9:36 ET:

Price Change

Canola

Nov 877.40 up 0.50
Jan 869.00 up 0.60
Mar 859.50 up 0.60
May 842.30 up 0.30


  (END) Dow Jones Newswires
  09-24-21 1000ET
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