By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 7 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were higher on Wednesday, getting support from modest gains in the Chicago soy complex.
However, pressure was coming from declines in European rapeseed and Malaysian palm oil. Small losses in global crude oil prices contributed additional pressure on vegetable oils.
Australia projected its 2022/23 canola harvest should exceed seven million tonnes, which will increase that country’s exports at the expense of Canada’s.
The Canadian Grain Commission (CGC) recently issued its monthly export report, showing outbound movements of canola were 1.29 million tonnes in October. That’s a jump of almost 32 per cent compared to October 2021. Also, the year-to-date canola exports to China have ballooned 107 per cent at 749,700 tonnes.
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“The exports to China are the fastest in more than 10 years,” an analyst commented.
Canola crush margins increased slightly from Tuesday, but they remain well below the record levels reached in November.
The Canadian dollar was higher on Wednesday with the loonie at 73.41 U.S. cents, compared to Tuesday’s close of 73.27.
Approximately 14,400 canola contracts were traded as of 10:21 CST.
Prices in Canadian dollars per metric tonne at 10:21 CST:
Price Change Canola Jan 855.50 up 6.00 Mar 845.50 up 5.80 May 847.40 up 5.00 Jul 848.80 up 3.80
