By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, April 27 (CNS Canada) – ICE Futures Canada canola contracts were holding onto small gains Friday morning in the most active contracts, finding themselves caught between a bullish Statistics Canada acreage estimate and bearish activity in outside vegetable oil markets.
Canadian farmers intend to plant 21.4 million acres of canola in 2018, which compares with last year’s record 23.0 million acres. Average trade estimates had been for an increase on the year, and the surprising decrease “should have seen canola jump by 10 dollars,” according to an analyst.
However, prices were within a dollar of unchanged, with losses in Chicago Board of Trade soyoil and Malaysian palm oil futures weighing on values. Market participants were also second-guessing the StatsCan numbers, with many remaining of the opinion that actual planted area will still end up increasing on the year.
About 6,300 canola contracts had traded as of 8:55 CDT.
