By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 1 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were “roaring back” on Tuesday after selling off yesterday, said a Winnipeg-based trader.
“I think it’s a mixture of commercial and spec demand,” he said, noting there is some technical resistance as prices approach recent contract highs.
A big question, according to the trader, will be the Statistics Canada principal field crops report released on Thursday. He said Prairie farmers experienced above and below average canola yields in 2020, with the only certainty being production ”is going to end up obviously not where we thought.”
Statistics Canada forecast canola production at 19.3 million tonnes in September and it’s generally expected Thursday’s number should be below that.
The trader said if the January canola contract hits C$587 per tonne, there would likely be some consolidation followed by the prices trending upward.
Lower Chicago soyoil, European rapeseed, and Malaysian palm oil values were not having much of an impact on canola today, he added.
Nor was the Canadian dollar, which was relatively firm at 77.17 U.S. cents, compared to Monday’s close of 77.13.
Approximately 16,200 canola contracts were traded as of 10:49 CST.
Prices in Canadian dollars per metric tonne at 10:49 CST:
Canola Jan 584.10 up 6.00
Mar 579.80 up 6.10
May 576.30 up 6.20
Jul 569.50 up 5.20