By Dwayne Klassen, Commodity News Service Canada
April 24, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:24 CDT Wednesday with much of the upward price action associated with the smaller than anticipated acreage estimates and the continued tight old crop supply situation, market watchers said.
Commodity fund buying, inspired by the smaller than expected acreage forecast from Statistics Canada early Wednesday was associated with the upward price action, brokers said. The government agency said farmers in Canada intend on seeding 19.133 million acres to canola in the spring of 2013. This would compare with the 21.531 million acres seeded in 2012 and pre-report estimates which ranged from 20.000 million to 21.251 million acres.
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Some of the fund interest was also believed to be searching for buy-stop orders, analysts said.
Strength in canola also came from the tight old crop supply situation and the continued delays in planting the crop in western Canada due to cold and wet weather conditions, traders said.
Gains in CBOT soyoil futures, steady domestic and crusher usage of canola and the slow pace of farmer deliveries into the cash pipeline on the Canadian prairies helped to influence the upward price action.
As of 10:24 CDT, about 12,515 canola contracts had traded. Of those contracts, 8,340 were spread related.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:24 CDT:
