By Phil Franz-Warkentin, Commodity News Service Canada
October 4, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:52 CDT Friday, as the large Canadian crop weighed on values.
StatsCan pegged canola production at a record 15.96 million tonnes, which was well above the previous forecast of 14.74 million and the 13.78 million tonnes grown the previous year. While traders still anticipate an even larger crop in subsequent reports, the confirmation of the rising yields was enough to put some pressure on the market, according to participants.
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Steady farmer hedges and a lack of the speculative short-covering that had underpinned prices earlier in the week added to the softer tone. Losses in European rapeseed futures were also bearish for canola.
However, chart support was holding to the downside, limiting the losses. A turn higher in the CBOT soy complex, after early declines, helped underpin the canola market as well, according to traders.
Solid end user demand was another supportive influence, as canola remains attractively priced to exporters and domestic crushers.
About 20,000 canola contracts had traded as of 10:52 CDT, with inter-month spreading a feature.
Milling wheat, durum, and barley futures were untraded on Friday.
Prices in Canadian dollars per metric ton at 10:52 CDT:
