By Phil Franz-Warkentin, Commodity News Service Canada
April 25, 2013
Winnipeg – ICE Canada canola contracts were Thursday morning, seeing a recovery from Wednesday’s late session selloff as tight nearby supplies and concerns over new crop plantings provided support.
Canola was underpinned for most of the day on Wednesday by the Statistics Canada planting report which pegged intended canola acres below trade guesses at only 19.1 million acres. That would compare with 21.5 million the previous year. However, the survey was conducted in late March, and actual area may still end up larger, according to participants.
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Attention was shifting away from the acreage data on Thursday, with gains in CBOT soybeans and other outside oilseed markets said to be behind much of the spill-over buying interest.
The late spring in western Canada and resulting lack of farmer selling were also supportive.
On the other side, Wednesday’s late turn lower was bearish from a technical standpoint, according to an analyst. The firmer Canadian dollar, which was up by nearly half a cent relative to its US counterpart, also put some pressure on values.
About 2,300 canola contracts had traded as of 8:45 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged Thursday morning.
Prices in Canadian dollars per metric ton at 8:45 CDT:
