By Jade Markus, Commodity News Service Canada
WINNIPEG, April 14 – ICE Canada canola contracts were stronger in early activity on Thursday, as Agriculture and Agri-Food Canada expects increased exports this year, and lowered carryout.
Exports were revised upward to 10 million from a previously anticipated 9.5 million.
Ending stocks in 2015/16 are now expected to be 1.35 million, compared with a previously estimated 1.85 million.
Next year’s ending stocks are forecast at 900 thousand, compared with a previously anticipated 1.4 million, according to federal estimates.
Canola’s technical bias is to the upside, and Malaysian palm oil closed stronger overnight, which were also supportive features on Thursday.
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However, the Canadian dollar strengthened against its US counterpart on Thursday, tracking gains in crude oil, which made canola less appealing to international buyers.
Ample supplies of soybeans are keeping pressure on both US and Canadian markets.
Even if canola production falls short this year, there will be enough vegetable oil available to keep a lid on prices.
About 6,046 canola contracts had traded as of 8:40 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:40 CDT:
