By Terryn Shiells, Commodity News Service Canada
April 19, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform moved higher Friday morning, with follow-through buying from Thursday’s gains behind much of the price strength, analysts said.
Values were also underpinned by concerns about tight old crop supplies in Canada. Talk is that with a late spring, harvest will be later and old crop supplies will have to last longer than normal.
Worries that canola production could suffer in 2013/14 because unfavourable weather is delaying planting in western Canada this spring added to the bullish tone, as did some speculative buying.
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Further support came from slow farmer selling, as producers are waiting until they’re sure they will be able to produce a decent crop this year.
Canola prices were also lifted by spill over support from the gains seen in European rapeseed and Malaysian palm oil overnight.
However, pressure from the advancing soybean harvest in South America and ideas that the US will plant a large soybean crop this spring limited the gains.
The losses seen in the Chicago soybean complex also spilled over to weigh on canola values.
As of 8:38 CDT, about 3,990 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged Friday morning.
Prices in Canadian dollars per metric ton at 8:38 CDT:
