By Phil Franz-Warkentin, Commodity News Service Canada
April 23, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 11:10 CDT Thursday, as oversold price sentiment and a bullish reaction to the Statistics Canada planting intentions report provided support.
StatsCan pegged canola area this spring at 19.8 million acres, which would be down slightly from the 19.9 million acres planted the previous year. Most traders and industry participants had been forecasting an increase of at least a million acres, and the fact that farmers were basically unchanged in their intentions provided a boost for the futures.
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Canola is still cheap compared to most other oilseeds and the recent declines were also said to be overdone from a chart standpoint, providing some further support for the futures.
However, CBOT soybeans and soyoil were slightly softer at midsession, which put some pressure on the canola market.
About 24,000 canola contracts had traded as of 11:10 CDT, with intermonth spreading a feature as traders continue to exit the nearby May contract.
Milling wheat, durum, and barley futures were untraded and unchanged after seeing some price revisions following Wednesday’s close.
Prices in Canadian dollars per metric ton at 11:10 CDT:
