MarketsFarm — ICE Futures canola contracts moved higher during the week ended Wednesday, holding above major support as end-users showed solid demand.
“The demand side of the formula is still quite good,” said Errol Anderson, of Pro Market Communications in Calgary.
Domestic crushers were showing the best demand, he said, but added that exporters were also still in the market despite continued difficulties some companies are having selling to China.
While canola is holding firm relative to other oilseeds, Anderson expected any moves much higher would require spillover support from Chicago Board of Trade soybeans.
While soybeans were looking oversold in his opinion, Anderson added there was little reason for soybeans to go higher either.
Statistics Canada releases its first survey-based acreage estimates of the season on May 7. Anderson expected to see a slight three per cent decline in canola area from the 21 million acres seeded in 2019, though some analysts predict an increase on the year.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.