ICE weekly outlook: Canola steady at midweek

Spring seeding more or less underway

ICE July canola with 20- and 100-day moving averages and CBOT July 2020 soyoil (blue line). (Barchart)

MarketsFarm — After showing considerable strength in prior trading sessions, canola contracts were either side of unchanged at midweek.

David Derwin of P.I. Financial in Winnipeg said canola was holding steady in comparison to other vegetable oils.

“There’s general weakness in other markets, but canola hasn’t had too much of a move,” he said.

Considerable losses for Chicago soyoil hampered any significant gains for canola. The July soyoil contract has lost approximately half of a cent so far this week.

Planting is underway across most of the Canadian Prairies, with minor speed bumps caused by unseasonably cold weather and isolated instances of snow.

In Manitoba, all crops are about nine per cent planted; canola seeding is up to 15 per cent complete, depending on the region.

According to last week’s report from Saskatchewan Agriculture, canola was just two per cent seeded across the province as of May 4. Alberta’s Agriculture Financial Services Corp. (AFSC) on Friday reported that province’s canola seeding at 2.2 per cent complete as of May 5.

Relative weakness to the Canadian dollar has provided a bit of support to canola values. The dollar remained under 71 U.S. cents at midweek.

— Marlo Glass reports for MarketsFarm from Winnipeg.

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