By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Dec. 20 (MarketsFarm) – The ICE Futures canola market was holding onto small gains in most months Friday morning, although activity was choppy as participants were squaring positions ahead of the holidays.
Canola remains cheap compared to other oilseeds, with wide crush margins keeping domestic processors on the buy side.
A firmer tone in the Chicago Board of Trade soy complex and weakness in the Canadian dollar was also supportive.
Agriculture and Agri-Food Canada lowered its canola ending stocks projection for 2019/20 to 3.5 million tonnes, which would compare with the November forecast of 4.7 million and the 2018/19 level of 4.1 million.
Ample visible supplies in the commercial pipeline remained a bearish influence in the background.
About 7,000 canola contracts had traded as of 9:04 CST.
Prices in Canadian dollars per metric ton at 9:04 CST:
Price Change
Canola Jan 467.70 up 0.80
Mar 477.70 up 0.60
May 486.40 up 0.10
Jul 491.90 unchanged
