By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 22 – (MarketsFarm) – ICE Futures canola contracts were stronger at midday Friday, as the path of least resistance remains pointed higher for the oilseed.
Gains in Chicago Board of Trade soyoil and weakness in the Canadian dollar was supportive, with crush margins improving despite canola futures hitting fresh contract highs.
“We’re going higher and higher, but crush values are also improving,” said a trader noting that canola was not overpriced. A lack of significant farmer hedges was also supportive, as producers are reluctant to forward price too much canola after last year’s drought.
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However, some profit-taking did come forward, taking values off their session highs.
Statistics Canada releases its first survey-based acreage estimates for the upcoming growing season on April 26. While strong prices should be encouraging an increase in seeded canola area from the 22.5 million acres planted in 2021, many market participants still anticipate a slight decline in canola area due to competition from other crops and rising input costs.
About 14,800 canola contracts traded as of 10:34 CDT.
Prices in Canadian dollars per metric tonne at 10:34 CDT:
Price Change
Canola May 1,189.50 up 10.50
Jul 1,171.20 up 12.40
Nov 1,078.30 up 13.70
Jan 1,079.70 up 12.90
