By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sept. 8 (MarketsFarm) – The ICE Futures canola market was stronger at midday Wednesday, although activity was choppy as the market reacted to outside influences.
Soyoil futures at the Chicago Board of Trade were also experiencing wide price swings, but were higher by midsession. A weaker tone in the Canadian dollar also provided some support.
While seasonal harvest pressure was somewhat bearish, disappointing yields and the small production prospects remained supportive overall.
Canadian canola ending stocks for 2020/21 were pegged at 1.77 million tonnes by Statistics Canada in a report on Wednesday morning. That would be roughly half of the previous year’s carryout, but still well above pre-report trade estimates. However, the market showed little reaction to the report, with a recent upward revision to the year-ago production hinting at the larger stocks, according to a broker.
About 16,300 canola contracts traded as of 10:50 CDT.
Prices in Canadian dollars per metric tonne at 10:50 CDT:
Price Change
Canola Nov 883.80 up 3.70
Jan 868.80 up 4.30
Mar 849.80 up 3.90
May 826.70 up 1.40
