By Terryn Shiells, Commodity News Service Canada, December 5, 2012
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at stronger price levels at 8:50 CST Wednesday, as Statistics Canada once again lowered their 2012/13 (Aug/Jul) canola production estimate.
Statistics Canada pegged canola production for 2012/13 at 13.309 million metric tonnes, down from their October estimate of 13.359 million metric tonnes and 14.6 million in 2011/12. This compares to pre-report expectations of 13 million to 14.4 million metric tonnes.
Canola futures were also supported by the advances seen in outside oilseed markets. European rapeseed futures were stronger during overnight trade, and the CBOT soybean complex also moved to the upside.
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Much of the buying that took soybeans higher was linked to strong demand and weather problems in South America, market watchers noted.
Slow farmer selling, as many producers continue to hold out for better prices, also helped canola values move to higher ground.
However, the upswing in the value of the Canadian dollar limited the advances, as it made canola more expensive for foreign buyers.
As of 8:50 CST Wednesday, about 6,390 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged.
