|By Phil Franz-Warkentin, Commodity News Service Canada|
|Sept. 7, 2012|
|Winnipeg – ICE Futures Canada canola contracts closed with small gains on Friday, as tightening supplies and concerns over the size of this year’s crop provided support.
Statistics Canada released its ending stocks numbers for the recently completed 2011/12 (Aug/Jul) crop year this morning, pegging canola supplies as of July 31 at the relatively tight level of only 788,000 tonnes. With ending stocks more than a million tonnes smaller than the revised supplies left over from the previous year, traders said the tight stocks highlighted the need for a large harvest in 2012.
However, given the yield reports coming in from the harvest so far, total canola production in the country is unlikely to live up to earlier expectations, said participants. As a result, end users were being forced to pay up to secure supplies. Commercials were some of the noted buyers in the day’s activity.
Outside oilseed markets, including Malaysian palm oil, European rapeseed and CBOT soybeans all experienced losses, which served to limit the gains in canola, said traders.
The continued strength in the Canadian dollar, which moved further above parity with its US counterpart, also weighed on canola values.
About 13,064 canola contracts were traded on Friday, which compares with Thursday when 11,285 contracts changed hands. Milling wheat futures were higher in thin commercial trade, as gains in the US wheat markets spilled over to provide support. Durum and barley futures were both untraded, although the two commodities saw revisions after the close.
Settlement prices are in Canadian dollars per metric ton.Price Change
Canola Nov 640.60 up 0.60
Jan 644.50 up 0.70
Mar 645.50 up 0.60
Milling Wheat Oct 298.20 up 4.20
Dec 305.70 up 4.20
Durum Oct 306.90 up 1.50
Dec 311.40 up 1.50
Barley Oct 260.00 dn 4.50
Dec 265.00 dn 4.50
Futures Prices as of May 24, 2013
Prices are in Canadian dollars per metric ton