By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Dec. 4 (MarketsFarm) – The ICE Futures canola market was stronger Friday morning, hitting its highest levels in seven years as bullish technical signals and the need to ration tightening supplies provided support.
Updated production estimates released by Statistics Canada on Thursday remained a key driver, as the canola crop came in at the low end of trade expectations at 18.7 million tonnes. While that would be the smallest crop in five years, exports are already running at a record pace.
Canada has exported 4.2 million tonnes of canola through the first 17 weeks of the crop year, according to the latest Canadian Grain Commission data. That’s up by 1.2 million tonnes from the same point the previous year. The domestic crush is also solid, at 3.4 million tonnes.
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Gains in Chicago Board of Trade soyoil provided additional spillover support, although soybeans were posting small losses.
Strength in the Canadian dollar, which was nearing 78 U.S. cents, put some pressure on values. Ideas that canola was looking overbought as the nearby January contract neared the psychological C$600 per tonne level also tempered the gains.
About 11,000 canola contracts had traded as of 8:40 CST.
Prices in Canadian dollars per metric ton at 8:40 CST:
Price Change
Canola Jan 597.50 up 8.40
Mar 590.90 up 7.20
May 584.50 up 6.10
Jul 575.40 up 3.90
