By Jade Markus, Commodity News Service Canada
WINNIPEG, December 2 – ICE Canada canola contracts were higher at midday Wednesday, as the rally in US canola markets stalled, and traders took positions ahead of a Statistics Canada report due at the end of the week.
“I imagine canola is going to stay fairly subdued going into this report,” said one Canadian trader.
There is room for canola to catch up to the US markets, but many traders don’t want to push the market, he added.
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“Nobody is going to want to be too heavily committed going into that report.”
Market projections collected by CNS Canada ahead of the StatsCan report peg canola production between 14.5 million to 16.2 million tonnes, with most guesses coming in at around 15.5 million.
That compares with StatsCan’s October estimate of 14.3 million tonnes.
“It creates a lot more uncertainty than we normally would see in canola. It’s probably going to stay pretty quiet until that report comes out,” the trader said.
If the numbers released by Statistics Canada prove to be lower-than-expected, canola has room to gain, especially as it has lost a lot of ground to US markets in the past two weeks.
Malaysian palm oil closed mixed.
About 18,671 canola contracts had traded as of 11:00 CST.
Milling wheat, durum, and barley futures were all untraded and
unchanged.
Prices in Canadian dollars per metric tonne at 11:00 CST:
