By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 24 (MarketsFarm) – ICE Futures canola contracts were firmer Wednesday morning, recovering off the lows hit Tuesday as the market found modest support from Statistics Canada’s first acreage estimates of the year.
Statistics Canada forecast canola area in 2019 at 21.314 million acres, which would be down by 6.6 per cent from the previous year. Concerns over Chinese demand together with dryness concerns in parts of the southern Prairies could result in additional acreage reductions in subsequent reports, according to analysts.
Early weakness in the Canadian dollar and ideas that canola was looking oversold also provided some support.
However, losses in Chicago Board of Trade soybeans put some spillover pressure on the Canadian oilseed. Large old crop supplies also remained a bearish influence in the background.
About 6,000 canola contracts had traded as of 8:48 CDT.
Prices in Canadian dollars per metric ton at 8:48 CDT:
Canola May 438.70 up 0.90
Jul 446.80 up 0.70
Nov 459.60 up 0.60
Jan 467.30 up 1.50
Futures Prices as of April 24, 2019
Prices are in Canadian dollars per metric ton