ICE Canola Midday: More Gains as Liquidation Continues
24/07/2024 (Morning Star), Manitoba - Intercontinental Exchange canola futures were on the rise at midsession Tuesday, in what an analyst said is very likely more fund liquidation.
"It's sunnier than I thought they would be," he commented about canola's gains.
Also, the analyst suggested that should canola add two to three dollars today that it could be in position to test C$700 per metric ton.
Despite heat damage to the canola in the drier areas of the Prairies and to later planted fields, he held to his project of up to 20 million tons of canola this harvest.
Additional support for the Canadian oilseed came from strong upticks in Chicago soybeans and increases in new crop soyoil and soymeal. There was pressure from slight declines in European rapeseed while Malaysian palm oil was relatively steady. Losses in crude oil weighed on the vegetable oils.
Agriculture and Agri-Food Canada released its July supply and demand report on Monday afternoon, showing 2024/25 canola output at 18.63 million tons, up from June's 18.10 million. Ending stocks slipped from last month's 2.50 million tons to now 2.10 million.
The Canadian dollar was slightly lower at late Tuesday morning, with the loonie slipping to 72.63 U.S. cents compared to Monday's close of 72.70.