ICE Close: Production Concerns Buoy Canola

Continued uncertainty about 2019 Canadian production prospects helped to underpin canola futures on Friday.

Bruce Burnett, Director of Markets and Weather Information at Glacier Farm Media, has estimated this year’s Canadian canola crop at 17.85 million tonnes, citing early season dryness and the potential for frost to catch some late-developing crops this fall. That’s well below the current Agriculture Canada projection of 20.1 million tonnes.

Meanwhile, this week’s Saskatchewan crop report pegged the canola crop in that province at a relatively modest 42% good to excellent as of Monday, while a Winnipeg trader today put the crop across the entire Prairie at about 58% good to excellent.

“Which is not terrific, but a fairly decent crop in total,” the trader said.

November canola was up $4.20 at $449.60, January was $4.10 higher at $456.60 and March added $3.90 to $463.60.

Source: DePutter Publishing Ltd.

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