By Phil Franz-Warkentin, Commodity News Service Canada
August 21, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:46 CDT Wednesday, as gains in CBOT soybeans and a smaller than expected production estimate from Statistics Canada provided support.
StatsCan pegged Canada’s 2013/14 canola crop at a record 14.7 million tonnes, which was up from the 13.3 million grown the previous year but below average trade guesses. With most industry participants anticipating a crop above 15.0 million tonnes, given the improved weather conditions since the survey was conducted in late July, the number was seen as slightly supportive for prices.
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However, traders said most of the direction in canola was coming from the US soy complex as hot and dry weather conditions across the US Midwest underpinned soybean values.
Solid end user demand and speculative short-covering on recent declines was also supportive, according to participants.
Weakness in the Canadian dollar, which was down by half a cent relative to its US counterpart, helped underpin canola values as well.
However, scale-up hedge selling did temper the advances in canola as early harvest operations get started in western Canada.
At 10:46 CDT, about 11,000 canola contracts had changed hands, with spreading only a minor feature.
Milling wheat, durum, and barley futures were untraded and unchanged after seeing prices adjusted following Tuesday’s close.
Prices in Canadian dollars per metric ton at 10:46 CDT:
