|By Terryn Shiells, Commodity News Service Canada|
|October 5, 2012|
|WINNIPEG – Canola contracts on the ICE Futures Canada platform were stronger at 8:31 CDT Friday, as a lower than expected production estimate from Statistics Canada Thursday continued to support prices, analysts said.
StatsCan estimated canola production for 2012/13 (Aug/Jul) at 13.4 million tonnes, down 2 million tonnes from their estimate in August. The number was also lower than pre-report estimates, and the 2011 production number of 14.5 million tonnes.
The need to ration demand because of the tight Canadian canola supply also generated some of the upward price action, traders said.
Strength in the CBOT soybean complex also helped canola move to the upside. Much of the buying that took soybeans up was linked to strong export demand.
Advances seen in outside oilseed markets, including European rapeseed and Malaysian palm oil, also added to the bullish price sentiment.
However, the upswing in the value of the Canadian dollar limited the advances. The stronger Canadian currency makes canola more expensive for foreign buyers.
Activity was on the light side Friday morning. As of 8:31 CDT, only about 780 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:31 CDT:
|Nov||611.20||up 4.70 Jan 610.70 up 6.20 Mar 606.00 up 5.30 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 June 18, 2013
Prices are in Canadian dollars per metric ton