WINNIPEG, Manitoba--Intercontinental Exchange canola futures were higher at midday Monday as the latest rally in the Canadian oilseed was in its fourth session.
Canola was getting help from spillover in higher values for Chicago soybeans and soyoil, along with European rapeseed. Malaysian palm oil and Chicago soymeal were down a little, putting some pressure on further gains. Modest upticks in global crude oil prices lent support to the vegetable oils.
An analyst said the nearby November canola contract was pushing towards C$840 per metric ton.
"It's really been grinding, it needs more support," he stated.
The oilseed could get a boost on Tuesday with the release of the first crop production estimates for 2023/24 from Statistics Canada. Ahead of the model-based report the average trade guess pegged canola at 17.4 million metric tons, well down from the 18.8 million metric tons projected by Agriculture and Agri-Food Canada.
The U.S. Department of Agriculture called for 19.0 million metric tons in its August report.
The Alberta crop report on Friday said the province-wide harvest of all crops was 11% complete, with canola at 1% finished. Also the canola rated 42% good to excellent.
The Canadian dollar was relatively steady at mid-Monday morning, with the loonie nudging up to 73.53 U.S. cents compared with Friday's close of 73.50.
Approximately 10,850 canola contracts were traded as of 11:32 a.m. EDT.
Prices in Canadian dollars per metric ton at 11:32 EDT:
Price Change
Canola Nov 815.60 up 4.30
Jan 821.90 up 3.40
Mar 825.40 up 4.40
May 824.00 up 4.50
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
08-28-23 1204ET
