By Phil Franz-Warkentin, Commodity News Service Canada
December 4, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were bouncing around both sides of unchanged and only posting small losses in most months at midday Thursday, as reaction to a bearish StatsCan production report was countered by spillover buying interest from the gains in CBOT soybeans.
StatsCan pegged Canada’s 2014/15 canola crop at 15.55 million tonnes in a report out Thursday morning, which was above average trade guesses and compares with the previous estimate of 14.08 million tonnes.
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“The trade was a little surprised (by the canola production estimate) . . . but there is also definitely some demand in here lurking underneath the market,” said a broker accounting for the fact that canola was not posting larger losses.
A lack of farmer selling, a weaker Canadian dollar, and gains in CBOT soybeans were also supportive for canola.
Fund traders are still holding a net long position of about 4,000 to 5,000 contracts, according to participants. The general technical trend is currently pointing lower, which could bring in some long liquidation if there is any more weakness in the futures, said a broker. However, “if there is any kind of a bounce they’ll back away.”
About 25,000 canola contracts had traded as of 10:38 CST.
Milling wheat, durum, and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:38 CST:
