ICE Canola Stronger, StatsCan Supportive

StatsCan pegged the 2009/10 (Aug/Jul) Canadian canola crop at 9.541 million metric tons, which was at the low end of trade estimates and well below the 12.642 million tons grown the previous year.

With the CBOT soy complex also being called higher, traders expected canola would be well supported on Friday.

Ongoing concerns about the lateness of this year’s canola crop, and the potential for an early frost, should also provide some support, according to traders. Overnight temperatures dropped as low as 4 degrees Celsius in parts of Saskatchewan overnight, highlighting the frost risk.

A stronger tone in the Canadian dollar should limit the upside in canola, according to a trader.

In addition, market participants pointed out that the first StatsCan production estimates of the year are often downplayed given the fact that successive reports usually see the numbers revised higher.

About 850 canola contracts had traded as of 8:49 CDT, the bulk of that in the November futures month.

Western barley futures were untraded and unchanged in overnight activity. StatsCan pegged Canadian barley production at 8.948 million metric tons, which was within trade estimates, but below the year ago level of 11.781 million tons. Traders thought the confirmation of a smaller barley crop, together with the calls for a higher start in CBOT corn, should help the futures see some strength Friday.

Prices in Canadian dollars per metric ton at 8:49 CDT: