By Terryn Shiells, Commodity News Service Canada
December 4, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were weaker at 10:34 CST Wednesday, reacting to the bearish Statistics Canada which showed a surprisingly large Canadian canola crop, analysts said.
StatsCan pegged 2013/14 (Aug/Jul) Canadian canola production at 17.96 million tonnes, which was at the highest end of expectations and above their previous estimate of 15.96 million tonnes. There were 13.87 million tonnes of Canadian canola grown last year.
Further downward pressure came from worries that it will be impossible to move the entire Canadian crop this year, resulting in larger carryout stocks.
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Chart-based selling, as the January contract broke below the key level of C$480 per tonne, added to the bearish tone.
However, spillover support from the advances seen in Chicago soybean futures helped to limit the declines, as did ideas that canola is undervalued compared to other oilseeds.
The downswing in the value of the Canadian dollar was also supportive, as it made canola more attractive to crushers and exporters.
Above average volumes were noted, with the January and March contracts experiencing a lot of action. As of 10:34 CST Wednesday, about 31,830 contracts had traded.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:34 CST:
