By Phil Franz-Warkentin, Commodity News Service Canada
August 21, 2013
Winnipeg – ICE Futures Canada canola contracts were stronger on Wednesday, as spillover from the gains in CBOT soybeans and a smaller-than-expected production estimate from Statistics Canada provided support.
Continued hot and dry weather conditions across the US Midwest underpinned soybean values, which accounted for much of the spillover strength in canola.
StatsCan pegged Canada’s 2013/14 canola crop at a record 14.7 million tonnes, which was up from the 13.3 million grown the previous year but below average trade guesses. With most industry participants anticipating a crop above 15.0 million tonnes, the official number was seen as slightly supportive for prices, according to participants.
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However, traders generally expect to see upward revisions in subsequent reports given the improved growing conditions since the survey was conducted in late July.
Hedge selling tempered the advances in canola as well, as early harvest operations get started in western Canada. Losses in Chicago soyoil and technical resistance to the upside also put some pressure on values.
About 18,594 canola contracts were traded on Wednesday, which compares with Tuesday when 13,272 contracts changed hands.
Milling wheat, durum and barley futures were untraded and unchanged on Wednesday after wheat prices saw some minor adjustments following Tuesday’s close.
Settlement prices are in Canadian dollars per metric ton.
