GFM Network News

A worker moves a crude palm oil tank in Thailand’s Petchaburi province on Jan. 14, 2008. Buoyed in part by the current energy crisis, Malaysian palm oil futures have risen recently to record levels, providing some support for other vegoils.

Chicago soy drags, other vegoils support canola

Bearish data from USDA has knocked CBOT soybeans way down

ICE Futures canola contracts fell off of the top edge of their well-established trading range during the second week of October, but the losses were short lived with a number of underlying influences keeping the market well supported. Traders were busy during the week, rolling their positions out of the nearby November contract and into

Biodiesel is seen through a tube at Patagonia Bioenergia’s biodiesel refinery at San Lorenzo, Argentina on Feb. 26, 2010.

Energy markets spur canola’s latest gains

Current values of well over $900 per tonne are supposed to be rationing demand

Whatever seasonal harvest pressure there was in this drought-stricken year appears to have subsided, with ICE canola futures posting solid gains through the first full week of October. The general supply tightness and need to ration demand remained a supportive influence for the Canadian oilseed, but the latest gains likely had more to do with outside energy

Canola values all over the place

Canola values all over the place

ICE canola followed the Chicago soy complex higher, then way lower

It was a wild ride for canola on ICE Futures during the Sept. 30 session with prices all over the place. Coming out of the overnight session, canola was well poised on Thursday for a strong rally due to increased demand in the vegetable oil market. This stemmed from a power outage conundrum in China

While expectations for a way smaller crop remain supportive, canola values may not have much room left to the upside.

Demand for canola seen retreating with supplies

Incoming U.S. soy crops will have a seasonal influence on oilseed values

ICE Futures canola contracts held rangebound during the week ended Sept. 24, with seasonal harvest pressure on the one hand, countered on the other by the fact that the crop coming off the fields is extremely small. The November contract has held in a sideways range between $850 and $920 since the middle of July.

Canola remains rangebound for now

Canola remains rangebound for now

A production update from StatsCan spurs a brief rally in canola

After Statistics Canada issued its updated crop production report on Sept. 13, canola on ICE Futures took a bit of an upswing. Such was a given, as the federal agency dropped its estimate for 2021-22 canola production, from the 14.7 million tonnes it predicted in its Aug. 30 report down to 12.8 million. Unlike the reaction

Consensus in the grain trade suggests StatsCan’s latest estimate predicting a 14.7-million-tonne canola crop this year will turn out to be generous in hindsight.

Canola demand rationing already underway

ICE November canola has dipped to around the $850-per-tonne mark for now

ICE Futures canola contracts fell sharply lower during the week ended Sept. 10, hitting their weakest levels in a month as speculative profit-taking weighed on the market. From a chart standpoint, November canola fell below both its 20- and 50-day moving averages during the week, which was bearish from a technical standpoint. However, it found some support around

Canola mostly pulls back after StatsCan estimates

Canola mostly pulls back after StatsCan estimates

FUTURES | Canola also remains subject to the Chicago soy complex’s complexities

Any hopes of canola getting a bounce on ICE Futures from Statistics Canada’s production report on Aug. 30 were largely dashed. The Canadian oilseed, for the most part, remained lower in the aftermath of the long-awaited report. The pattern repeated itself for a few days; for most of a session canola was pulled down by

A grasshopper perches on a drought-stressed spring wheat plant near Bowdon, N.D., about 220 km south of Boissevain, on July 28.

Expectations low for canola, wheat estimates

ICE canola awaits direction, while MGEX spring wheat has plateaued

This year’s drought seriously cut into Canadian crop production, although the full extent of the damage remains unknown as harvest operations continue across the Prairies. That production uncertainty has been a supportive feature in the canola market for some time and should continue to be. That said, the upside may be limited, as demand is

Oilseed traders and analysts have heard anecdotal reports of single-digit yields from canola growers.

Canola remains the follower

Prices still must reflect that there won’t be enough canola to go around

Canola futures took a tumble at the end of this week as prices on the Chicago soy complex pulled back, with declines in European rapeseed and Malaysian palm oil adding to the mix. The Canadian oilseed demonstrated some independent strength as price rationing propelled values higher earlier in the week, but weakness in the other

“We see crop disappearing every day because of the dry condition in the Prairies, and we see record prices at the same time.” – Ward Toma.

Drought-battered farmers facing another crisis — contract penalties

Deadly combo of crop failures and sky-high prices leave some facing huge penalties on unfulfilled contracts

Glacier FarmMedia – The drought is squeezing producers from all sides, with many facing another calamity — not having enough crop to fulfil their grain contracts. “There are issues because the drought is so widespread,” said Jason Saunders, vice-chair of Alberta Wheat who farms near Taber, Alta. “There was aggressive forward contracting on canola and