By Dave Sims, Commodity News Service Canada
WINNIPEG, December 4 – ICE Canada canola contracts were trending lower Friday morning, after a report by Statistics Canada greatly exceeded production estimates for Canadian canola.
Heading into the report most traders pegged the 2015/16 canola crop between 14.5 to 16.2 million tonnes. However, this morning’s report by StatsCan put production estimates at 17.2 million tonnes. The near-term contract promptly dropped C$8 per tonne, however it has since recovered some of the losses.
The CBOT soy complex and European rapeseed futures were both lower which contributed to the declines.
However, the Canadian dollar was weaker which limited the losses.
Heading into today many traders had already exited long contracts anticipating bearish outlook to the report, which softened the blow for many.
Canola crush margins have greatly improved over the past few weeks, according to a report.
About 14,000 canola contracts had traded as of 8:53 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:53 CST:
