By Phil Franz-Warkentin, Commodity News Service Canada
August 22, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were holding onto small gains at midday Friday, although activity was thin and choppy with pre-weekend consolidation behind some of the activity.
Canola had posted larger gains earlier in the session amid ideas that Thursday’s late sell-off was overdone. A slightly firmer tone in CBOT soybeans and weather uncertainty in parts of Western Canada also provided some support.
Temperatures dipped near the freezing mark in parts of northern Alberta overnight, while rainfall in the southern Prairies was not really needed at this late stage of development.
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Thursday’s Statistics Canada production estimate was another bullish influence in the background, as the government agency pegged this year’s canola crop at 13.9 million tonnes, well below the 17.9 million grown in 2013.
However, the chart signals remain pointed lower for canola, which tempered the advances. Losses in soyoil and expectations for a large US soybean crop were also overhanging the market.
About 4,000 canola contracts had traded as of 10:53 CDT.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:53 CDT:
