By Dave Sims, Commodity News Service Canada
WINNIPEG, June 30 – Canola contracts on the ICE Futures Canada platform were mixed at 10:35 CDT Tuesday as traders positioned themselves ahead of the looming release (11:00 CT) of the USDA Planted Acreage/Quarterly Stocks Reports. The size of the US soybean crop will have a major influence on the near-term direction of the canola market, according to traders.
The market was also reacting to this morning’s release of the Statistics Canada acreage report which pegged 2015/16 canola acreage at 19.84 million acres in Western Canada. That is slightly higher than trade guesses heading in which were closer to 19.5 million acres.
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Persistent dry conditions across Alberta and Saskatchewan continue to support canola, but it is running into resistance from US soybeans, which are lower.
As well, the Canadian dollar is also weaker relative to its US counterpart, which made canola more attractive to international buyers.
There are ideas that canola is expensive compared to other vegetable oils which also put pressure on values.
The economic turmoil in Greece is also causing some hesitation among investors which was bearish for the market, according to an analyst.
Around 6,000 contracts had traded as of 10:35 CDT, Tuesday.
Milling wheat, durum and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:35 CDT:
