By Terryn Shiells, Commodity News Service Canada
December 5, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were weaker at 10:45 CST Thursday. The January contract broke below the key support level of C$480 per tonne, as it was following the losses seen in Chicago soybean futures, analysts said.
Wednesday’s Statistics Canada report, which showed a shockingly large 18.0 million tonne canola crop for 2013/14, was also bearish. In 2012/13, Canadian growers produced 13.9 million tonnes of canola.
Expectations that Canada’s logistical system won’t be able to move this year’s entire canola crop, leaving larger carryout stocks, further undermined prices.
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However, the losses were limited by strong buying interest from crushers, as crush margins are at some of the best levels seen in a long time, according to a trader.
The Canadian dollar was slightly higher against the US dollar Thursday, but remained weak overall, which was also supportive.
Canola futures found some spillover support from the advances seen in Chicago soyoil futures as well.
As of 10:45 CST Thursday, about 21,085 contracts had traded.
Milling wheat, barley and durum were untraded and unchanged following price revisions after the close on Wednesday.
Prices in Canadian dollars per metric ton at 10:45 CST:
