By Phil Franz-Warkentin, Commodity News Service Canada
April 24, 2013
Winnipeg – ICE Canada canola contracts were stronger Wednesday morning, seeing a modest reaction to the Statistics Canada planting intentions report released early in the day.
StatsCan forecast intended Canadian canola area this year at 19.1 million acres, which was below trade estimates and the 2012 acreage of 21.5 million. While the number was bullish for canola, the reaction in the market was subdued. The survey was conducted in late March, and actual canola area is generally expected to end up larger as weather conditions over the past month should shift some area away from wheat and back into the oilseed, said analysts.
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Tight nearby supplies and the need to ration demand until the new crop is available remained supportive for canola, according to participants.
CBOT soybeans were mixed in early activity, with the bias to the downside. The softer tone in the US market did put some pressure on canola values.
About 4,000 canola contracts had traded as of 8:50 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged Wednesday morning. All wheat acres reported by StatsCan, at 26.7 million came in above trade guesses and the year ago level of 23.8 million. However, early expectations are for that number to decline in subsequent reports, as some wheat area moves into other crops – including canola. Barley acres were forecast at 7.2 million, which was below average trade guesses, but in line with the 7.4 million seeded the previous year.
Prices in Canadian dollars per metric ton at 8:50 CDT:
