By Phil Franz-Warkentin, Commodity News Service Canada
April 25, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were up sharply at 10:54 CDT Friday, seeing some follow-through buying interest after Thursday’s bounce higher. Some buy stops were hit on the way up, exaggerating the upward move.
Canola continued to find some support from Thursday’s smaller than expected acreage estimate from Statistics Canada. According to StatsCan, farmers in the country intend to seed 19.8 million acres of canola in 2014, which would be down slightly from the previous year and well off trade guesses that had generally topped 21 million acres.
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Reports that Pakistan was in the market buying a number of shipments of Canadian canola earlier this week were also supportive. Gains in the CBOT soy complex, the weaker Canadian dollar, and supportive technical signals underpinned the futures as well, according to participants.
Scale-up farmer hedges tempered the upside potential, as producers look to generate some cash flow ahead of spring seeding. The large old crop supplies remained a bearish influence overhanging the market as well.
About 18,000 canola contracts had traded as of 10:54 CDT, with intermonth spreading a feature.
Milling wheat, durum, and barley futures were untraded and unchanged after seeing some price revisions following Thursday’s close.
Prices in Canadian dollars per metric ton at 10:54 CDT:
