By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Sept. 19 (CNS Canada) – ICE Futures Canada canola contracts were posting small gains at midday Tuesday, as traders pushed updated Statistics Canada production estimates to the side.
The model-based production estimate using satellite imagery pegged the country’s canola crop at a record 19.7 million tonnes, which would be well above the survey-based estimate of 18.2 million tonnes released in August. However, industry participants still think the actual crop may be larger still, which muted the response in the futures to the bearish headline number.
Cold and wet harvest-delaying weather in parts of Western Canada provided underlying support for canola. Gains in Chicago Board of Trade soyoil added to the firmer tone in the Canadian market, although soybeans were down in Chicago.
While concerns over harvest delays were somewhat supportive, active farmer deliveries kept a lid on the upside as end users have little reason to bid up the market at this time of year.
About 12,600 canola contracts had traded as of 10:58 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
