By Terryn Shiells, Commodity News Service Canada
WINNIPEG, Oct 3 – Canola contracts on the ICE Futures Canada platform were stronger Friday morning, with the November contract breaking back above the key C$400 per tonne level.
Much of the strength was linked to a supportive Statistics Canada report, analysts said. StatsCan pegged Canadian canola production at 14.08 million tonnes for 2014/15, which was at the low end of expectations. The number was above their August estimate of 13.91 million tonnes, but below the 17.97 million tonnes grown last year.
The lower than expected number could result in very tight ending stocks for 2014/15. Though, the crop might end up being bigger because at the time of the survey, not a lot of harvest had occurred, traders said.
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Sentiment that the market is oversold and the sharply lower Canadian dollar, as it was at 89.05 cents US Friday morning, added to the bullish tone.
However, Chicago soybean and soyoil futures were softer, which spilled over to weigh on canola.
Ongoing expectations of record large US soybean production and pressure from the advancing North American oilseed harvest were also bearish.
As of 8:40 CDT Friday, about 3,800 contracts had traded.
Milling wheat, durum and barley futures were untraded following price revisions after Thursday’s close.
Prices in Canadian dollars per metric ton at 8:40 CDT:
