ICE Canada Morning Comment: Canola stocks down 39 per cent
Adds to the need for price rationing
By Glen Hallick
Glacier Farm Media MarketsFarm – Canola futures on the Intercontinental Exchange were higher on Thursday morning, following the Statistics Canada grain stocks report.
StatCan said total canola stocks as of March 31 were estimated at 5.87 million tonnes, down from 9.58 million a year ago. The latest stocks came within trade expectations.
The canola numbers highlighted the tightening supply in Canada and the need to ration demand through price increases. That saw the July contract climb further above its resistance level and its major moving averages.
Additional support for canola came from upticks in the Chicago soy complex, European rapeseed and Malaysian palm oil. Also, increases in crude oil spilled over into the vegetable oils.
The Canadian dollar was weaker on Thursday morning, with the loonie dropping to 72.07 U.S. cents, compared to Wednesday’s close of 72.48.
Approximately 14,950 contracts were traded by 8:34 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola Jul 713.20 up 11.90 Nov 666.70 up 3.70 Jan 675.10 up 3.80 Mar 681.10 up 2.70
