By Dave Sims, Commodity News Service Canada
WINNIPEG, September 3 – Canola contracts on the ICE Futures Canada platform were weaker at 10:40 CDT Thursday, as a new report from Statistics Canada indicated there were much more canola in the country than anybody thought.
According to StatsCan’s Stocks of Principal Fields Crop report, Canada has 2.3 million tonnes of canola in its overall stocks as of July 31. The agency also raised its production numbers from last season which further added to the total.
Analyst say this likely means the trade has been overestimating exports along with the crush numbers.
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“All of this adds to potential supply bearishness as the numbers continue to get bigger,” said one participant.
The Canadian dollar was also up half a cent relative to its US counterpart, which added to the bearish tone.
New cash crop deliveries are becoming more frequent as the harvest progresses, according to a report.
However, large gains in US soyoil helped limit the losses.
Once the initial shock from the StatsCan report wears off, canola should start to follow US markets again, suggested an analyst.
Around 21,000 contracts had traded as of 10:40 CDT,
Thursday.
Milling wheat, barley and durum were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:40 CDT:
Price Change
Canola Nov 458.70 dn 7.10
Jan 464.50 dn 7.40
Mar 469.10 dn 6.80
Dec 224.00 unch
Durum Oct 335.00 unch
Dec 335.00 unch
Barley Oct 184.00 unch
Dec 184.00 unch
