By Phil Franz-Warkentin, Commodity News Service Canada
Dec. 5, 2013
Winnipeg – ICE Canada canola contracts were trading within a narrow range Thursday morning, seeing some consolidation following Wednesday’s bearish Statistics Canada production report.
StatsCan pegged the country’s canola crop at a record 18.0 million tonnes, which was well above both previous estimates and the year-ago level of 13.9 million tonnes. The burdensome supplies are expected to lead to a large carryout, which should limit the upside potential going forward, according to traders.
Canola dropped below major support levels in response to the StatsCan data, but failed to see any follow-through selling and managed to finish Wednesday’s session on a more stable note which was seen as supportive from a chart-standpoint.
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Ideas that canola was looking cheap compared to other oilseeds, provided some underlying support for canola as well. Continued weakness in the Canadian dollar was also supportive.
About 7,000 canola contracts had traded as of 8:51 CST.
Milling wheat, durum, and barley futures were all untraded, although wheat saw some price adjustments following Wednesday’s close.
Prices in Canadian dollars per metric ton at 8:51 CST:
