By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, April 27 (CNS Canada) – ICE Futures Canada canola contracts were lower at midday Friday, as losses in Chicago Board of Trade soyoil contracts were enough to counter a bullish Statistics Canada acreage estimate and gains in CBOT soybeans.
After Canadian farmers seeded a record large 23.0 million acre canola crop in 2017, most industry participants had expected to see an even larger crop in 2018, with many estimates topping 24.0 million. However, StatsCan surprised the trade by predicting planted canola area at only 21.4 million acres.
However, the number failed to drive prices higher, with market participants second-guessing the StatsCan estimate and anticipating upward revisions in subsequent reports.
Canola was also pressured by losses in CBOT soyoil, which dropped to fresh contract lows. Malaysian palm oil and European rapeseed futures were also weaker on the day.
About 11,500 canola contracts had traded as of 10:54 CDT.
