ICE Canola Weaker, But StatsCan Slightly Supportive
| 1 min read
| By Phil Franz-Warkentin, Resource News International |
| October 2, 2009 |
| Winnipeg – ICE Canada canola futures were weaker in light overnight activity. Calls for a lower start in the CBOT soy complex should keep canola under pressure, despite a Statistics Canada report that was seen as mildly supportive for the market, said traders.
Statistics Canada pegged Canadian canola production at 10.27 million metric tons, which was up from the last estimate of 9.54 million, but at the low end of pre-report trade guesses. However, traders pointed out that the survey was taken in early September, and won’t reflect the true size of the canola crop. Most market participants expect the actual crop will end up closer to 11 million tons, which would compare with the 2008/09 crop of 12.64 million tons. Overnight losses in Malaysian palm oil and European rapeseed futures, along with the declines in the crude oil and equity markets, should weigh on canola, according to traders. Exporter pricing has underpinned canola values in recent days, and should continue to be supportive on Friday, said traders. A weaker tone in the Canadian dollar was also expected to help limit the downside. About 900 canola contracts had traded as of 8:53 CDT. Western barley futures were unchanged and untraded in overnight activity. StatsCan pegged 2009/10 Canadian barley production at 9.16 million metric tons, which was up from the last estimate, but below average trade expectations. Canada grew 11.78 million tons of barley in 2008/09. Prices in Canadian dollars per metric ton at 8:53 CDT: |
| Price | Change | ||
| Canola | |||
| Nov | 378.90 | dn 3.30 | |
| Jan | 383.70 | dn 4.50 | |
| Mar | 386.70 | dn 5.00 | |
| Western Barley | |||
| Nov | 148.00 | unch | |
| Jan | 156.00 | unch | |
