By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Dec. 4 (MarketsFarm) – ICE Futures canola contracts were stronger at midday Wednesday, seeing some follow-through buying interest after Tuesday’s recovery off of nearby lows.
Gains in Chicago Board of Trade soybeans and soyoil provided spillover support, according to participants.
Statistics Canada releases updated production estimates on Friday, and positioning ahead of the report should account for some activity over the next few days. After Statistics Canada pegged the crop at 19.4 million tonnes in September, market opinions are divided on whether canola production will be up or down in the updated data.
The Canadian dollar strengthened by nearly half of a cent relative to its United States counterpart at midday following gains in crude oil and comments from the Bank of Canada, which put some pressure on canola values.
About 19,000 canola contracts traded as of 10:53 CST, with intermonth spreading a feature as participants roll out of the nearby January contract.
Prices in Canadian dollars per metric tonne at 10:53 CST:
Canola Jan 454.40 up 1.50
Mar 463.20 up 1.20
May 471.20 up 1.20
Jul 477.80 up 1.60
Futures Prices as of December 4, 2019
Prices are in Canadian dollars per metric ton