By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Sept. 9 (CNS Canada) – ICE Canada canola contracts were slightly lower Friday morning, as the market continued to feel pressure from Wednesday’s bearish Statistics Canada stocks report.
The larger-than-expected old crop canola carryout, coupled with StatsCan’s upward revision to the 2015/16 crop, has most market participants anticipating that 2016/17 production will end up well above the 17 million tonnes currently forecast.
Seasonal harvest pressure and ongoing uncertainty over Chinese demand were also overhanging the market, according to participants.
However, a firmer tone in Chicago Board of Trade soyoil provided some underlying support. Weakness in the Canadian dollar, solid end-user demand, and the fact that canola remains cheap compared to other oilseeds were also supportive.
About 3,000 canola contracts had traded as of 8:50 CDT.
Milling wheat, durum, and barley futures were all untraded.
