ICE Review: Canola Bumps Up Due to Chicago Beans, Meal
25/07/2024 (Morning Star), Manitoba - Intercontinental Exchange canola futures increased on Thursday, but with the upfront contracts fading from earlier gains.
Increases in Chicago soybeans and soymeal spurred the rise in canola. Additional support came from upticks in Malaysian palm oil and most European rapeseed contracts, while Chicago soyoil slipped back. Modest increases in crude oil lent support to the vegetable oils.
A trader said canola will continue to follow the Chicago soy complex until there are firm estimates for yields on the Prairies. At that time, the trade will decide to push canola higher or pull it lower.
Canola's November contract remained above its major moving averages. However, canola crush margins stepped back with the November positions now less than C$90 per ton above the futures.
Saskatchewan issued its crop report, noting that the Prairie heatwave will very likely cut into yields for canola and other crops. As of July 22, the province's canola rated 68% good to excellent.
The Canadian dollar was lower mid-afternoon Thursday with the loonie at 72.37 U.S. cents compared to Wednesday's close of 72.50.
There were 52,541 contracts traded on Thursday, compared to the 56,065 contracts that changed hands on Wednesday. Spreading accounted for 18,412 contracts traded.