By Glen Hallick, MarketsFarm
WINNIPEG, May 7 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were mixed on Friday morning, with gains in the old crop July contract and losses in the new crop positions.
Statistics Canada released its quarterly grain stocks report this morning, and as of March 31 total canola stocks in the country came to 6.57 million tonnes. That’s a drop of nearly 38 per cent from a year ago and about 30 per cent below the five-year average. The report confirmed the trade opinion that canola stocks are very tight and are at levels unseen since 2013.
The weather forecast for the Prairies has called for precipitation over the weekend for Alberta and southwestern Saskatchewan. However, the rest of the region is likely to remain dry.
In the weekly grain movement report from the Canadian Grain Commission, producer deliveries of canola were 322,800 tonnes for the week ended May 2. That’s a drop of about 22 per cent from the previous week. Canola exports jumped 96 per cent on the week at 253,800 tonnes, while domestic usage dropped more than 10 per cent at 202,000 tonnes.
The Canadian dollar pushed above 82 U.S. cents, which put pressure on canola values. The loonie was at 82.07 U.S. cents compared to Thursday’s close 81.97.
About 3,650 canola contracts had traded as of 8:37 CDT.
Prices in Canadian dollars per metric tonne at 8:37 CDT:
Canola Jul 977.60 up 14.10
Nov 755.00 dn 6.60
Jan 747.10 dn 5.00
Mar 740.00 dn 3.50