ICE weekly outlook: Canola stronger after Canada Day

ICE November 2020 canola with 20-, 50- and 100-day moving averages. (Barchart)

MarketsFarm — Canola contracts have made small gains this week after pausing on Wednesday for Canada Day. As the July canola contract has expired, attention turns to new-crop contracts.

Areas of the Prairies have received significant rain lately, with flood warnings and high water advisories across southwestern and western Manitoba after several consecutive storms. It’s not yet clear to what extent crops will be damaged by the excessive moisture.

In northern Alberta, 25 to 75 millimetres of rain are expected to fall over the next several days.

Earlier in the week, Statistics Canada released estimates for planted acreage in Canada. Canola area was estimated at 20.778 million acres, which was at the higher end of trade estimates but still slightly below the 20.956 million acres seeded the previous year.

The U.S. Department of Agriculture has also released new planted acreage estimates. Soybean area in the U.S. was estimated at 83.8 million acres by USDA, a slight increase from previous estimates but below pre-report estimates. U.S. growers planted 76.1 million acres of soybeans in 2019.

— Marlo Glass reports for MarketsFarm from Winnipeg.

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