Canola contracts on the ICE Futures Canada platform were higher Wednesday morning, in the wake of Statistics Canada’s acreage estimates.
The agency pegged Canada’s canola crop at 20.02 million acres, which is similar to last year’s level. The prediction was viewed as neutral however with some analysts believing a higher number was going to be called.
Canola is looking cheap relative to other vegetable oils, a trader said.
Traders are positioning themselves ahead of Canada Day (Fri, July 1) and the July 4th holiday in the US.
The July contract was showing large gains as traders exited the month in favour of more-deferred contracts.
However, losses in the US soy complex dragged on values.
Malaysian palm oil fell to its lowest level in nearly seven months due to poor fundamentals, according to a report. European rapeseed futures were also weaker.
The Canadian dollar was higher relative to its US counterpart which made canola less desirable to international buyers.
About 8,500 canola contracts had traded as of 8:50 CDT.
