By Terryn Shiells, Commodity News Service Canada
September 6, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were weaker Friday morning, following the release of a neutral Statistics Canada stocks report.
StatsCan pegged stocks of canola in Canada at 608,000 tonnes as of July 31, which was down compared to 707,000 tonnes at the same time last year, but in line with expectations.
Though the Canadian canola stocks number is tight, farmers are expected to produce a record large 2013/14 crop, and that’s what traders are focusing on, analysts said.
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Some of the weakness seen in canola futures was also linked to pressure from advancing canola harvest activities across Western Canada.
The sharp upswing in the value of the Canadian dollar, which gained almost a whole cent against the US dollar Friday morning, further undermined values. The stronger Canadian currency makes canola less attractive to foreign buyers.
However, the losses in canola were limited by spillover support from the advances seen in Chicago soybean and soyoil futures.
The need to keep a weather premium built into prices, as frost damage is still possible in some parts of Western Canada, kept a firm floor under the market.
As of 8:33 CDT Friday, 4,165 canola contracts had traded.
Barley futures were untraded and unchanged. Milling wheat and durum futures were also untraded and unchanged after the Exchange moved prices lower after the close on Thursday.
Prices in Canadian dollars per metric ton at 8:33 CDT:
