By Phil Franz-Warkentin, Commodity News Service Canada
October 3, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at midday Friday, as a sharply weaker tone in the Canadian dollar provided support.
The currency was down by roughly three-quarters of a cent relative to its US counterpart, which helps boost crush margins and also makes canola more attractively priced to international customers. The CBOT soy complex was weaker on the day, but when accounting for the exchange rate canola was holding relatively steady with its US counterparts.
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Chart-based buying did provide some support as well, with the November contract moving back above the psychological C$400 per tonne level.
Statistics Canada released updated production estimates Friday morning, pegging the canola crop at 14.1 million tonnes. The number was up slightly from the 13.9 million tonnes forecast in August, but came in at the low end of trade estimates.
Given the timing of the survey in early September, when little harvest activity had occurred, market participants generally remain of the opinion that actual production will still end up closer to 14.5 million tonnes.
About 9,500 canola contracts had traded as of 10:43 CDT.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:43 CDT:
