Canola contracts on ICE Futures came under pressure during the latter half of the week ended Aug. 20.
Canola prices started the week at $486.90 per tonne and finished stronger for the first two trading sessions of the week. On Thursday, nearby contracts came under pressure and the November contract closed down by $4.80, at $483 per tonne.
The Canadian dollar was around 76 U.S. cents for most of the week, closing Thursday at 75.79 U.S. cents. Canola held up against the stronger Canadian dollar for most of the week, but couldn’t withstand the bearish influences from both a strong loonie and losses in Chicago soyoil.
Nearby soyoil contracts were down by about a fourth of a U.S. cent on Thursday following the weekly export sales report from the U.S. Department of Agriculture, which showed no new soyoil purchases during the week ended Aug. 13.
Looming harvest activity also kept a lid on canola prices this week. According to the weekly crop report from Saskatchewan Agriculture, the province has begun in the southwest region of the province, and one per cent of canola has been harvested. Across the province, three per cent of canola was either swathed or ready to be cut.
However, the harvest is still a few weeks away in most regions. Hot weather is forecast across most of the Prairies, bringing with it the possibility of a weather premium.