|By Phil Franz-Warkentin, Commodity News Service Canada|
|Oct. 11, 2012|
|Winnipeg – ICE Canada canola futures were stronger Thursday morning, as the CBOT soy complex reacted bullishly to an updated production report from the USDA.
Given the improved crop conditions over the past month, the USDA upped its production estimate for soybeans by 9% from the September report to 2.86 billion bushels. The larger crop was offset by expectations for an increase in end-user demand, which kept the USDA’s ending stocks forecast for the year at the relatively tight level of 130 million bushels. After position-evening ahead of the report weighed on soybeans over the past week, the market was due for a corrective bounce, said analysts.
A lack of significant farmer selling and gains in other outside oilseed markets added to the firmer tone in canola, according to participants.
However, ideas that canola is overpriced compared to soybeans did temper the gains. A firmer Canadian dollar also weighed on values.
In addition, the USDA estimated the US canola crop at about 2.5 million tonnes, which was up by about a million tonnes from 2011.
About 4,300 canola contracts had traded as of 8:47 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged Thursday morning.
Prices in Canadian dollars per metric ton at 8:47 CDT:Price Change
Canola Nov 613.20 up 5.80
Jan 609.80 up 3.50
Mar 605.60 up 4.60
Milling Wheat Oct 293.80 unch
Dec 299.00 unch
Durum Oct 308.30 unch
Dec 312.80 unch
Barley Oct 245.00 unch
Dec 250.00 unch
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton