By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Dec. 8 (CNS Canada) – ICE Futures Canada canola contracts were mostly lower Friday morning, testing nearby support as losses in the Chicago Board of Trade soy complex weighed on values.
Solid farmer deliveries over the past week and resulting increase in visible supplies contributed to the softer tone, with the Canadian Grain Commission reporting canola stocks in the commercial system in their latest weekly report of 1.56 million tonnes.
Wednesday’s larger-than-expected canola production estimate also continued to weigh on values, as market participants adjust their balance sheets to account for a record 21.3 million tonne canola crop. That compares with last year’s 19.6 million tonne production.
Scale-down end user demand helped limit the losses, while chart support was also holding around the C$504 per tonne level in the January contract.
About 3,800 canola contracts had traded as of 8:55 CST.
