By Phil Franz-Warkentin, Commodity News Service Canada
June 28, 2013
Winnipeg – ICE Futures Canada canola contracts closed lower on Friday, as losses in CBOT soybeans and corn spilled over to weigh on values.
The USDA released updated acreage and stocks data Friday morning, and a bearish reaction to the numbers south of the border spilled into the Canadian market, said traders. The USDA unexpectedly raised its corn acreage estimate to 97.4 million acres, which would be the largest area since 1936. US soybean plantings were pegged at 77.7 million, which was slightly below trade guesses but still a record.
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Relatively favourable growing conditions across western Canada added to the softer tone in canola, with weather forecasts looking beneficial for crop development in most areas, said participants. However, many canola growing areas continue to face problems with excessive moisture, and that kept some support under the market.
A weaker tone in the Canadian dollar was also helping underpin canola values, as the softer currency boosts crush margins and makes exports more attractive.
Canadian markets will be closed July 1 for Canada Day, and positioning ahead of the long weekend was another feature of the activity.
About 15,176 canola contracts were traded on Friday, which compares with Thursday when 19,397 contracts changed hands. Spreading accounted for 2,796 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged on Friday.
Settlement prices are in Canadian dollars per metric ton.
