Canola futures moved higher Monday following Statistics Canada’s finding that farmers’ planned canola acreage increase was on the lower end of expectations.
May canola closed at $382.80 per tonne, up $3.40. July was up $3.90 to $389.80, and new crop prices rose as well. November canola rose $2.80 to $392.30.
The Statistics Canada report did not shock the market, but analysts said its prediction of a 4.4 percent increase in canola acres was near the bottom of analysts’ expectations. As well, it deflated ideas that acreage would be much higher because of canola’s relative new crop returns.
The increase in acreage could still bring in a record yield and it will be a record acreage if it is planted, but analysts say new demand from crushers and continued strong demand from overseas markets including China should allow canola prices to stay firm.
The Canadian dollar was slightly down, to $1.0005 US from Friday’s close of $1.0009.
Chicago Board of Trade soybeans were down 1.25 cents US to $9.99 per bushel and crude oil was down $1.27 per barrel to $83.86.
