By Phil Franz-Warkentin, Commodity News Service Canada
June 25, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were mixed at 10:45 CDT Tuesday, with gains in the nearby July contract but losses in the more deferred positions.
Activity in the outright market was described as very quiet, with most of the volumes tied to intermonth spreading.
Statistics Canada released its latest acreage estimates Tuesday morning, pegging canola area in the country at 19.7 million acres. That was up from the 19.1 million forecast in March, but still below the 21.5 million planted the previous year.
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While there are some areas of concern, crop conditions are looking good across most of western Canada, said a trader. He said the solid crop prospects should be encouraging some farmer selling, as cash bids likely have more room to the downside than the upside given the current weather outlooks.
Losses in CBOT soyoil did put some pressure on canola as well, although soybeans in the US were posting small gains.
Continued weakness in the Canadian dollar provided underlying support for canola, as the softer currency helps crush margins improve and also makes exports more attractive.
At 10:45 CDT, about 6,600 canola contracts had changed hands.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:45 CDT:
