ICE Close: Canola Strengthens with Smaller Crop

Canola futures were stronger in the most active months on Thursday, although activity was choppy as a number of conflicting influences pulled on the market.

A downward revision to Statistics Canada’s canola production estimate provided underlying support. The government agency pegged the 2018 crop at 20.3 million tonnes, which was at the lower end of trade estimates and 1 million tonnes below the previous year's production.

Weakness in the Canadian dollar was also supportive for canola, as the declining currency underpinned crush margins.

However, losses in Chicago Board of Trade soybeans and soyoil tempered the upside amid renewed concerns over trade relations between the U.S. and China.

The general technical outlook also remained pointed lower for canola, which made any gains a selling opportunity from a chart standpoint.

January canola gained $1.40 to $486.10, March was up $1.30 at $493.30 and May climbed $1.50 to $501.

Source: DePutter Publishing Ltd.

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