By Phil Franz-Warkentin, Commodity News Service Canada
October 3, 2013
Winnipeg – ICE Futures Canada canola contracts were stronger on Thursday, as gains in CBOT soyoil, a lack of significant farmer selling, and short-covering ahead of Friday’s Statistics Canada production report all provided support.
StatsCan is generally expected to confirm a record large Canadian canola crop of at least 16 million tonnes on Friday. While harvest pressure and the large production have weighed on the market recently, the big yields have already been factored into the futures and ideas that StatsCan may not show the full size of the crop in this report led to some short-covering, according to participants.
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Farmer hedges at the highs did temper the advances, said traders, but at the same time farmers were also said to be showing a reluctance to sell in hopes of seeing higher prices in the future.
Weakness in the outside financial markets and the ongoing uncertainty surrounding the US government shutdown did keep some caution in the grain and oilseed markets in general, including canola.
About 48,938 canola contracts were traded on Thursday, which compares with Wednesday when 23,794 contracts changed hands. Much of the activity tied to Exchange for Physical, or EFP, activity, as business in the cash market was being matched in the futures. Spreading accounted for 16,310 of the contracts traded.
Milling wheat, durum and barley futures were untraded.
Settlement prices are in Canadian dollars per metric ton.
