By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 7 (MarketsFarm) – The ICE Futures canola market was mixed at midday Friday, hitting a fresh high in the old crop July contract while the new crop months moved lower.
Statistics Canada confirmed the tightening old crop supply situation in their latest stocks report out this morning. Total canola supplies in the country of 6.6 million tonnes as of March 31, would mark the tightest stocks on that date in eight years.
The market is working to ration demand through the final months of the crop year, with end users bidding up in order to secure coverage of those dwindling supplies. Bullish technical signals and gains in Chicago Board of Trade soyoil futures were also supportive for canola.
However, recent strength in Canadian dollar put some pressure on values. Chart-based positioning also weighed on the new crop months ahead of the weekend.
About 15,000 canola contracts traded as of 10:50 CDT.
Prices in Canadian dollars per metric tonne at 10:50 CDT:
Canola Jul 979.50 up 16.00
Nov 756.30 dn 5.30
Jan 747.00 dn 5.10
Mar 737.00 dn 6.50