ICE Canada Morning Comment: Canola stocks drop
StatCan releases stocks report
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were higher on Friday morning following the release of Statistics Canada stocks report.
Total on farm and commercial canola stocks as of Dec. 31 were estimated at 11.38 million tonnes, down from 14.09 million a year ago. StatCan said the reduced stocks were due to increased exports and domestic use of the oilseed.
The Canadian Grain Commission reported year-to-date canola exports as of Feb. 2 reached 5.48 million tonnes, about double from those the same time last year. Domestic use of 5.94 million tonnes was 10.6 per cent ahead of a year ago.
Canola also reaped support from gains in Chicago soyoil and Malaysian palm oil. However, losses in Chicago soybeans and soymeal, along those in with European rapeseed tempered the increases. Upticks in crude oil spilled over into the vegetable oils.
The March canola contract pushed further above its major moving averages, which underpinned the oilseed’s values.
Trade issues with the United States and those forthcoming with China added a measure of caution in canola.
The Canadian dollar was higher on Friday morning, with the loonie at 69.95 U.S. cents compared to Thursday’s close of 69.82.
Approximately 14,700 contracts were traded by 8:37 CST and prices in Canadian dollars per metric tonne were:
Price Change Canola Mar 652.40 up 2.20 May 659.50 up 2.10 Jul 663.60 up 1.60 Nov 643.30 dn 0.40
