| By Phil Franz-Warkentin, Commodity News Service Canada |
| Oct. 19, 2012 |
| Winnipeg – ICE Futures Canada canola contracts closed mostly higher on Friday, as concerns over tightening supplies and a weaker tone in the Canadian dollar provided support. The gains in canola came despite the losses posted in CBOT soybeans and soyoil. The independent strength was tied to solid end-user demand, as concerns over tight supplies going forward had the commercials looking to secure some canola while they still can, said participants. Agriculture and Agri-Food Canada’s market analysis branch released updated supply/demand tables Thursday afternoon forecasting canola stocks by the end of the current crop year at only 450,000 tonnes. That compares with their previous estimate of 675,000 and the 2011-12 carryout of 788,000. Anything under a million is usually considered tight, according to industry participants. Read AlsoCanadian Financial Close: Loonie returns above 72 U.S. centsBy Glen Hallick Glacier Farm Media | MarketsFarm – The Canadian dollar on Friday finally turned around to close higher,… However, the gains in canola were tempered by the softer tone in most outside oilseed markets, including soybeans. Increased farmer selling, as cash bids topping C$14 per bushel in parts of western Canada encouraged some hedges, also slowed the upward move. As a result, canola futures were well off their highs for the day by the close. About 15,594 canola contracts were traded on Friday, which compares with Thursday when 19,350 contracts changed hands. Spreading accounted for about 11,170 of the contracts traded. Milling wheat futures were untraded, but were revised higher after the close. Durum and barley futures were untraded and unchanged.Settlement prices are in Canadian dollars per metric ton. |
