By Phil Franz-Warkentin, Commodity News Service Canada
June 28, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were lower at 10:35 CDT Friday, taking some direction from the softer CBOT soy complex as traders on both sides of the border positioned themselves ahead of the USDA’s acreage and quarterly stocks reports.
The magnitude of the losses were a little surprising, according to a broker who had expected to see more two-sided trade ahead of the reports. He said expectations for a bearish stocks report might be behind some of the selling pressure. The USDA releases its data at 11:00 CDT, and the numbers could result in some volatile activity if there are any surprises.
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Relatively favourable growing conditions across western Canada added to the softer tone in canola, with weather forecasts looking beneficial for crop development in most areas. However, the broker noted that up to 20% of the Canadian Prairies were dealing with excessive moisture, which was keeping some support under the market.
A weaker tone in the Canadian dollar was also helping underpin canola values, according to participants.
At 10:35 CDT, about 7,600 canola contracts had changed hands.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:35 CDT:
