By Glen Hallick, MarketsFarm
WINNIPEG, May 7 (MarketsFarm) – ICE Futures canola contracts were slightly higher on Thursday, getting support from strong gains in Chicago soyoil.
The half-cent increases in soyoil were due to higher energy prices, a Winnipeg-trader said.
Also, the trader stated today’s crop area and grain stocks reports from Statistics Canada weren’t having any effect on the canola prices. He stressed the canola stocks as of March 31, at 8.925 million tonnes, was “a waste of time.”
“There’s an extremely high probability the number is distorted by all of the canola in the fields not properly accounted for in the stocks report,” the trader commented and expects a much clearer picture to emerge in future reports.
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In the Statistics Canada crop area report, the federal agency projected canola acres in 2020 to slip by 1.6 per cent from last year to 20.615 million acres. Soybean acres were forecast to drop by 8.7 per cent at 5.220 million.
The trader noted the harvest of overwintered canola in Alberta was producing good results, but planting and combining in Saskatchewan and Manitoba were off to a slow start.
The Canadian dollar was higher at 71.46 U.S. cents, compared to Wednesday’s close of 70.80.
Approximately 9,500 canola contracts were traded as of 10:52 CDT.
Prices in Canadian dollars per metric tonne at 10:52 CDT:
Price Change
Canola Jul 466.50 up 1.10
Nov 473.50 up 1.20
Jan 479.30 up 1.30
Mar 485.30 up 1.20
