By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, June 29 (CNS Canada) – ICE Futures Canada canola contracts were mixed at midday Thursday, with most months moving higher as advances in outside markets provided support despite a relatively bearish acreage estimate from Statistics Canada.
StatsCan pegged canola area at 22.8 million acres, which was at the top end of trade guesses and well above the 20.4 million seeded in 2016. While the large acreage base put some pressure on canola, a rally in Minneapolis spring wheat was spilling over to provide support.
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“The weather and Minneapolis wheat have trumped the StatsCan report,” said a Winnipeg broker.
Dryness in the key US spring wheat growing regions accounted for much of the strength in wheat, while Canada’s all-wheat acreage number was down from the year-ago and below canola for the first time ever.
Tight old crop supplies and fund short covering were supportive for canola. However, in addition to the large canola acres, the upside was also tempered by the continued strength in the Canadian dollar.
About 14,500 canola contracts had traded as of 10:50 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
