By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sept. 12 (MarketsFarm) – The ICE Futures canola market was stronger Thursday morning, hitting its best levels of the past week despite a large upward revision to Statistics Canada’s production estimate.
The government agency’s latest model-based forecast pegged the 2019/20 canola crop at 19.4 million tonnes, which compares with the August forecast of 18.5 million tonnes. However, that was in line with expectations and still down from the 20.3 million tonnes grown the previous year.
Sharp gains in Chicago Board of Trade soybeans and soyoil accounted for much of the spillover buying interest in canola.
The United States Department of Agriculture releases its monthly supply/demand report at 11:00 CDT, and any surprises in the data could alter the direction in the markets by the close.
About 6,500 canola contracts had traded as of 9:07 CDT.
Prices in Canadian dollars per metric ton at 9:07 CDT:
Canola Nov 444.80 up 3.70
Jan 452.50 up 3.70
Mar 459.30 up 3.00
May 465.00 up 2.70