By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 18 (MarketsFarm) – The ICE Futures canola market was stronger Thursday morning, seeing some follow-through buying interest after Wednesday’s move to fresh contract highs.
Tightening old crop supplies and the need to ration demand remained a key driver in the market.
Agriculture and Agri-Food Canada released updated supply/demand estimates on Wednesday, pegging the canola carryout for both 2020/21 and 2021/22 at only 700,000 tonnes. That would represent the tightest carryout since 2013 and compares with the 2019/20 ending stocks of 3.1 million tonnes.
The nearby March contract posted the largest gains, as investors exit the lightly-traded front month ahead of its expiry.
The Chicago Board of Trade soy complex was mixed in early activity, with gains in soyoil but a softer tone in soybeans and soymeal.
About 6,000 canola contracts had traded as of 8:38 CST.
Prices in Canadian dollars per metric ton at 8:38 CST:
Price Change
Canola Mar 762.00 up 8.40
May 719.30 up 1.70
Jul 687.50 up 1.90
Nov 581.70 up 3.00
