|By Phil Franz-Warkentin, Commodity News Service Canada|
|Oct. 5, 2012|
|Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:47 CDT Friday, seeing some follow-through buying interest on Thursday’s rally.
“We’re seeing the hangover from the StatsCan report,” said a Winnipeg-based trader. The latest StatsCan survey results, released October 4, estimated this year’s Canadian canola crop at 13.4 million metric tonnes. That was a two million tonne reduction from the previous report and below the 14.5 million tonne crop grown in 2011.
The tighter supply situation means the market will need to work to ration demand going forward, accounting for some of the strength in the futures, according to traders. Domestic crushers were noted buyers.
Improving technical signals were also supportive for canola, as the nearby bias has turned to the upside, said a broker. However, fund traders were largely on the sidelines after exiting their long positions in recent weeks.
A stronger Canadian dollar and losses in CBOT soyoil did limit the advances in canola, according to participants. A reluctance to push values too far ahead of the Thanksgiving long weekend also tempered the gains.
Canadian markets will be closed Monday, October 8, for Thanksgiving, while US markets will remain open.
At 10:47 CDT, about 9,300 canola contracts had changed hands. Intermonth spreading was a feature, accounting for about 5,000 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:47 CDT:Price Change
Canola Nov 609.50 up 3.00
Jan 608.70 up 4.20
Mar 605.40 up 4.70
Milling Wheat Oct 293.30 unch
Dec 298.50 unch
Durum Oct 309.00 unch
Dec 313.50 unch
Barley Oct 245.00 unch
Dec 250.00 unch
Futures Prices as of May 21, 2013
Prices are in Canadian dollars per metric ton