By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 4, 2014
Winnipeg – ICE Canada canola contracts were posting small losses Tuesday morning in very quiet activity. Confirmation of the burdensome supply situation in Western Canada accounted for some of the weakness.
Canadian canola stocks in all positions, as of December 31, were pegged at 12.6 million tonnes by Statistics Canada in a report released Tuesday morning. While the large stocks were in line with trade guesses, they were still more than four million tonnes above the supplies available at the same time the previous year and confirmation of the big stocks was seen as highlighting the ongoing logistics issues across the Prairies.
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A firmer tone in the Canadian dollar, slight declines in CBOT soyoil, upward revisions to the size of the European rapeseed crop, and expectations for a large South American soybean crop were also putting some pressure on canola, according to traders.
However, gains in CBOT soybeans did provide some spillover support. Oversold price sentiment also kept the losses in check.
About 900 canola contracts had traded as of 8:41 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged after seeing some price revisions following Monday’s close.
Prices in Canadian dollars per metric ton at 8:41 CST:
