By Terryn Shiells, Commodity News Service Canada
Winnipeg, June 30 – The ICE Futures Canada canola market moved lower Tuesday morning, reacting to a Statistics Canada that saw increased acres compared to previous estimates.
StatsCan pegged 2015/16 canola acreage at 19.84 million, up from the 19.42 million acres estimated in their April report. In 2014/15, 20.24 million acres of canola were seeded. The figures were as of June 11, 2015, which means more adjustments to acreage are likely as they may not reflect the killing frosts seen in late May, early June.
Spillover pressure from the declines seen in Chicago soybean and soyoil futures added to the bearish tone, as did profit taking ahead of the month’s end.
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Continued talk that canola is looking expensive relative to other oilseeds also weighed on the market.
However, ongoing concerns about reduced Canadian canola production prospects, due to unfavourable drought conditions in parts of Western Canada, remained supportive.
The downswing in the value of the Canadian dollar also limited the losses, as it made canola more attractive to foreign buyers.
As of 8:40 CDT Tuesday about 3,370 contracts had traded.
Milling wheat, durum and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:40 CDT:
