By Terryn Shiells, Commodity News Service Canada
WINNIPEG, Oct 2 – Canola contracts on the ICE Futures Canada platform were narrowly mixed amid choppy activity Thursday morning, as traders were squaring positions ahead of Friday’s Statistics Canada production report.
Spillover pressure came from the weakness in Chicago soyoil, Malaysian palm oil and European rapeseed futures in early and overnight activity, analysts said.
The technical bias in canola remains pointed lower, which further undermined values, traders said.
Ideas that StatsCan will raise its canola production estimate in Friday’s report were also bearish. Pre-report expectations call for the canola crop to come in at 14.0 to 14.9 million tonnes, up from the August estimate of 13.9 million tonnes. But, the survey was done in early September, when not a lot of harvesting had occurred, so there is still some uncertainty about how large the crop actually is.
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On the other side, steady commercial buying and unfavourable weather conditions for harvesting in many Prairie regions this week underpinned the market.
Chicago soybean futures were also starting to turn higher Thursday morning, which provided further spillover support for canola.
As of 8:45 CDT Thursday, about 3,800 contracts had traded.
Milling wheat, durum and barley futures were untraded following price revisions after Wednesday’s close.
Prices in Canadian dollars per metric ton at 8:45 CDT:
