By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, May 19 (CNS Canada) – ICE Futures Canada canola contracts were mixed at midday Friday, with losses in the nearby July contract and a firmer tone in the more deferred positions.
Gains in Chicago Board of Trade soybeans and soyoil provided some underlying support for canola, according to participants.
Tightening old crop supplies were also supportive for canola, with modest end-user demand coming forward, according to a broker.
The Canadian Grain Commission reported visible canola supplies at only 854,600 tonnes, which was down sharply from the previous week and the first time stocks dipped below the million tonne mark since September 2016.
However, Thursday’s sharp losses did some damage from a technical standpoint, which weighed on prices. Strength in the Canadian dollar also accounted for some of the weakness in the front month, according to a broker.
While some areas of Western Canada remain wet, improving weather forecasts over the next five days should allow for some good seeding progress, according to a broker.
Canadian markets will be closed Monday, May 22, for Victoria Day, and positioning ahead of the long weekend accounted for some of the activity.
About 5,000 canola contracts had traded as of 10:59 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.