By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 22 (MarketsFarm) – The ICE Futures canola market was stronger at midday Thursday, hitting fresh contract highs once again.
Tightening supplies remained the key driver in the market, with a rally in Chicago Board of Trade soybeans and soyoil also supportive.
“Crushers are trying to buy more old crop before farmers get busy with seeding,” said a trader on strength in the cash market that was spilling into the futures.
Concerns over dryness cutting into new crop production also proved support, although there is more moisture in the longer range forecasts.
Statistics Canada releases its first survey-based acreage estimates on April 27. General expectations are for an increase in seeded canola area from the 20.8 million acres planted in 2020, but agronomic factors and competition with other crops may limit the extent of the increase.
About 16,500 canola contracts traded as of 10:47 CDT.
Prices in Canadian dollars per metric tonne at 10:47 CDT:
Canola May 881.10 up 4.80
Jul 834.20 up 15.10
Nov 693.90 up 12.90
Jan 688.80 up 9.50
Futures Prices as of April 22, 2021
Prices are in Canadian dollars per metric ton