By Terryn Shiells, Commodity News Service Canada
August 21, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were stronger following the release of Statistics Canada’s production report Wednesday morning.
The report was seen as friendly for the commodity, as StatsCan’s production estimate of 14.73 million tonnes for canola was at the lower end of expectations, analysts said. Though, the report won’t have a lasting impact on the market as traders shift their focus to weather and outside influences.
A rally seen in the Chicago soy complex was also helping to underpin canola futures Wednesday morning. Concerns about dry weather harming US soybean crops were supportive for both markets.
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The downswing in the value of the Canadian dollar also encouraged some buying in the market, as it made prices more attractive to foreign buyers and crushers.
The need to keep a weather premium built into prices, due to concerns about early frosts affecting canola crops, added to the bullish tone.
However, forecasts calling for beneficial warmer weather across most of Western Canada throughout the rest of August helped to limit the upside in canola.
As of 8:41 CDT, about 2,165 canola contracts had traded.
Barley and durum futures were untraded and unchanged. Milling wheat futures were also untraded, though the Exchange moved prices lower after the close on Tuesday.
Prices in Canadian dollars per metric ton at 8:41 CDT:
