By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Dec. 6 (MarketsFarm) – ICE Futures canola contracts were posting solid gains at midday Friday, benefitting from a number of supportive price influences.
Statistics Canada pegged the 2019 canola crop at 18.65 million tonnes, which came in well below average trade expectations and would represent an 8.3 per cent drop on the year. While some traders remain of the opinion that the actual crop will still end up larger, the headline number was enough to give the futures a boost on Friday.
A rally in Chicago Board of Trade soyoil and weakness in the Canadian dollar also provided support, as that combination underpinned crush margins. Disappointing Canadian jobs data accounted for the half-cent drop in the country’s currency.
However, ample supplies in the commercial pipeline tempered the advances. The Canadian Grain Commission reported visible canola stocks of about 1.4 million tonnes, as of Dec. 1.
About 36,000 canola contracts traded as of 10:33 CST, with intermonth spreading a feature as participants roll out of the nearby January contract.
Prices in Canadian dollars per metric tonne at 10:33 CST:
Canola Jan 458.70 up 4.20
Mar 467.10 up 3.80
May 474.80 up 3.40
Jul 480.50 up 3.00
Commodity Future Prices
Prices are in Canadian dollars per metric ton