|By Phil Franz-Warkentin, Commodity News Service Canada|
|August 10, 2012|
|Winnipeg – ICE Canada canola futures were stronger Friday morning, as the market reacted to updated US production data and the resulting gains in soybeans.
The USDA pegged the country’s soybean crop at 2.692 billion bushels, which was below trade guesses and well off the previous forecast of 3.050 billion bushels. The likelihood of tighter soybean supplies sent CBOT soybeans higher and canola found spillover support.
A weaker tone in the Canadian dollar helped underpin canola as well, according to participants. Solid end-user demand remained supportive as well.
However, expectations for a large Canadian canola crop, as harvest pressure ramps up over the next few weeks, did temper the gains in the futures. Uncertainty in the outside financial markets, following some disappointing Chinese economic data, also served to limit some of the speculative buying interest.
About 2,700 canola contracts had traded as of 8:35 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged Friday morning.
Prices in Canadian dollars per metric ton at 8:35 CDT:Price Change
Canola Nov 615.10 up 6.00
Jan 619.00 up 6.20
Mar 621.20 up 6.90
Milling Wheat Oct 303.80 unch
Dec 309.40 unch
Durum Oct 309.00 unch
Dec 313.50 unch
Barley Oct 264.50 unch
Dec 269.50 unch
Futures Prices as of June 18, 2013
Prices are in Canadian dollars per metric ton