By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Dec. 5 (MarketsFarm) – ICE Futures canola contracts were stronger at midday Thursday as speculative short covering and spillover from advances in Chicago Board of Trade soybeans provided support.
Statistics Canada releases updated production estimates on Friday, and uncertainty ahead of the report had speculators covering short positions, according to a broker.
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.
“With all the crop out in the field, there’s an uncertainty over how farmers will report that,” said a broker pointing to the adverse harvest conditions across the Prairies this fall. While production will definitely be down from September expectations in some areas, he said the question now was whether or not better yields in other areas would pull up the total.
Continued strength in the Canadian dollar tempered the upside potential in canola.
About 20,200 canola contracts traded as of 10:31 CST, with intermonth spreading a feature as participants roll out of the nearby January contract.
Prices in Canadian dollars per metric tonne at 10:31 CST:
Canola Jan 455.50 up 2.90
Mar 464.60 up 3.20
May 473.30 up 3.60
Jul 479.40 up 3.40
Futures Prices as of December 5, 2019
Prices are in Canadian dollars per metric ton