By Dave Sims, Commodity News Service Canada
WINNIPEG, August 23 – Canola contracts on the ICE Futures Canada platform were higher at 10:35 CDT on Tuesday, taking strength from gains in soyoil and Malaysian palm oil.
The market also received a slight bump after this morning’s release of Statistics Canada’s crop production estimates. The agency pegged production in 2016/17 at 17 million tonnes. That compares to pre-report ideas of 15.9 to 20.0 million tonnes and the year-ago level of 17.2 million tonnes, which was somewhat supportive.
Still, the number was greeted warily by many analysts and traders.
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“I’m surprised the number is as low as it is considering when they did the survey the crop was at its peak,” said one market analyst in Winnipeg.
Gains in crude oil were also supportive for canola.
However, the Canadian dollar was higher relative to its US counterpart, which made canola less desirable to foreign buyers.
Chicago Board of Trade soybeans were also lower, which undermined the market.
Losses in European rapeseed futures were bearish for values.
China’s looming changes (Sept 1) to dockage allowances on imports of Canadian canola has created some uneasiness in the market.
About 8,500 canola contracts had traded as of 10:35 CDT.
Milling wheat, barley and durum were untraded.
Prices in Canadian dollars per metric ton at 10:35 CDT.
