By Glen Hallick, MarketsFarm
WINNIPEG, March 22 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower in heavy trading on Wednesday morning, as pressure from losses in comparable oils pushed prices down to levels unseen in about two years.
The Chicago soy complex was weaker, although soyoil stepped back slightly. However, there were more substantial declines in European rapeseed and Malaysian palm oil.
With the United States Federal Reserve set to make its next interest rate announcement later today, global crude oil prices had retreated. However, they have recovered somewhat, and with a little bit of support spilling over into the vegetable oils.
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Although crush margins eased back a little, they continue to be very wide which underpins canola values.
Agriculture and Agri-Food Canada (AAFC) issued its March supply and demand estimates late Tuesday afternoon. The department kept nearly all of its numbers in place from its February report. Canola production for 2023/24 is still pegged at 18.5 million tonnes with ending stocks holding at 850,000 tonnes. Other than possible tweaks, fresh numbers are unlikely to be published until after Statistics Canada releases its acre projections on April 26.
The Canadian dollar was virtually unchanged with the loonie at 72.98 U.S. cents compared to Tuesday’s close of 72.96.
About 13,250 contracts had traded as of 8:35 CDT.
Prices in Canadian dollars per metric tonne at 8:35 CDT:
Price Change Canola May 728.80 dn 0.60 Jul 715.90 dn 3.60 Nov 691.50 dn 5.50 Jan 695.20 dn 5.90
