WINNIPEG, Manitoba--Intercontinental Exchange canola futures were stronger at midsession Wednesday, after experiencing a string of losses.
An analyst said the turnaround was likely due to the technical charts, fundamentals, along with weather and crop conditions on the Prairies. He noted prices plummeted by at least C$100 per ton over the last several weeks and pegged support for the November contract at C$600/ton.
The analyst added the November contract was oversold and due for something of a correction.
Support for canola was coming from gains in Chicago soyoil, European rapeseed and Malaysian palm oil. While Chicago soybeans were turning mixed, the soymeal was down. Crude oil prices were inching back and forth either side of steady, with them currently a shade lower.
Statistics Canada is scheduled to publish its planted acres report tomorrow morning. The trade is expecting little movement with canola at 21.20 million to 21.75 million acres, compared to StatCan's March estimate of 21.39 million acres. Last year, Canadian farmers seeded 22.08 million acres.
StatCan issued its crush report showing 920,432 tons of canola were processed in May, higher than the year ago of 769,942. Also the data agency said canola deliveries in May were almost 1.55 million tons, higher than the one million tons a year ago.
The Prairie weather outlook called for temperatures to remain in the low to mid 20 degrees Celsius with a system bringing more rain to the region by the weekend.
The Canadian dollar stepped back by late Wednesday morning, with the loonie at 72.99 U.S. cents compared to Tuesday's close of 73.21.
Approximately 38,000 canola contracts were traded as of 11:45 a.m. EDT, with prices in Canadian dollars per metric ton: Canola Price Change Jul 593.50 up 9.10 Nov 617.30 up 13.00 Jan 624.00 up 12.90 Mar 629.60 up 13.10
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
06-26-24 1241ET
