|By Phil Franz-Warkentin, Commodity News Service Canada|
|Oct. 4, 2012|
|Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:50 CDT Thursday, as traders reacted to the surprisingly bullish production report released by Statistics Canada.
StatsCan dropped its estimate for this year’s canola crop to 13.4 million tonnes, a 2 million tonne reduction from their previous forecast and below the 14.5 million tonne crop grown the previous year. While the industry knew yields did not live up to early expectations, the extent of the StatsCan revision came as a bit of a surprise.
The tightening stocks situation provided the catalyst for the gains in canola, as supplies will need to be rationed going forward, said participants
Gains in the CBOT soy complex added to the firmer tone in canola. However, soybeans moved off their highs which limited the spill-over support in canola to some extent.
Scale-up farmer selling also served to slow the advances in canola, said a broker.
At 10:50 CDT, about 19,500 canola contracts had changed hands. Intermonth spreading was a feature, accounting for over 13,000 of the contracts traded as participants continue to roll out of the nearby November contract.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:50 CDT:Price Change
Canola Nov 608.90 up 14.30
Jan 608.30 up 12.80
Mar 605.10 up 13.00
Milling Wheat Oct 294.30 unch
Dec 299.50 unch
Durum Oct 309.30 unch
Dec 313.80 unch
Barley Oct 245.00 unch
Dec 250.00 unch
Futures Prices as of May 24, 2013
Prices are in Canadian dollars per metric ton