ICE Canada Morning Comment : Canola Struggling to Retain Gains

WINNIPEG, Manitoba--Intercontinental Exchange canola futures were mixed on Wednesday morning, shedding much of their overnight increases.

As canola gleaned support from gains in the Chicago soybeans and soyoil, there was pressure from losses in Chicago soymeal, Malaysian palm oil and European rapeseed. Increases in crude oil underpinned the vegetable oils.

Tight supplies continued to push canola prices upward, with the need for price rationing for the July contract. That contract remained well above its major moving averages.

An analyst suggested that more than 20 million metric tons of canola could be needed in 2025/26 to meet demand. He also questioned how Agriculture and Agri-Food Canada would deal with canola exports well exceeding the department's projection in its forthcoming May report.

The Canadian dollar was stronger on Wednesday morning, with the loonie rising to 72.14 U.S. cents, compared to Tuesday's close of 71.76.

Approximately 8,350 contracts were traded by 9:38 EDT and prices in Canadian dollars per metric ton were:

 
           Price      Change 
Jul       719.20     up 0.90 
Nov       680.60     dn 0.40 
Jan       686.80     dn 0.20 
Mar       693.50     up 0.90 
 

Source: Commodity News Service Canada, [e-mail]

(END) Dow Jones Newswires

05-21-25 1001ET