By Dave Sims, Commodity News Service Canada
WINNIPEG, July 22 – Canola contracts on the ICE Futures Canada platform were higher at 10:50 CDT Wednesday, as the Canadian dollar was weaker against its American counterpart, which made canola more attractive to international buyers.
The nearby contracts are enjoying support at the C$520.00 per tonne mark.
Many traders are speculating about how big the 2015/16 canola crop will be. Yesterday’s supply/demand estimates from Agriculture and Agri-food Canada suggested production would be down from 14.925 million tonnes in June’s forecast to 14.300 million. The CWB estimated the 2015/16 crop at 12.180 million tonnes. Last year Canada grew 15.555 million tonnes of canola.
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“Everyone scratching their heads saying what the heck. Got to think they’re lower than 14 but their number is their number,” said a trader.
However, recent moisture across various parts of Alberta and Saskatchewan has helped alleviate the damage done by drought-like conditions across the two provinces.
Chinese demand for oilseeds is said to sluggish right now.
Around 4,600 contracts had traded as of 10:50 CDT, Wednesday.
Milling wheat, barley and durum were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:50 CDT:
Price Change
Canola Nov 522.80 up 3.00
Jan 523.40 up 2.90
May 520.00 up 3.00
Milling Wheat Oct 228.00 unch
Dec 228.00 unch
Durum Oct 335.00 unch
Dec 345.00 unch
Barley Oct 217.40 unch
Dec 218.10 unch
