By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG – ICE Canada canola contracts were posting small gains in most months Thursday morning, as the market managed to see a modest correction off of the three-month lows hit on Wednesday.
While recent activity in the canola market has been bearish from a chart standpoint, the futures started to see a correction late Wednesday and could still bounce higher, according to analysts.
Ongoing uncertainty over the size of this year’s Canadian crop and the need to keep some weather premiums in the futures through the harvest season provided further support.
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Statistics Canada releases its first survey-based production estimates of the year on Friday, August 21, and trade guesses place the crop at anywhere from 12.5 million to 14.5 million. That compares with the 15.6 million tonnes grown the previous year.
The Canadian dollar was holding steady Thursday morning, providing little direction for canola. The CBOT soy complex, meanwhile, was mixed, with losses in soyoil and a firmer tone in soybeans.
About 6,000 canola contracts had traded as of 8:56 CDT.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric ton at 8:56 CDT:
