By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 26 (CNS Canada) – ICE Futures Canada canola contracts lower Friday morning, as large supplies and expectations for an increase in Canadian acres weighed on values.
Agriculture and Agri-Food Canada released updated supply/demand tables late Thursday that included their first estimates on 2018/19 production. The government agency pegged seeded canola area for the upcoming crop year at 24.0 million acres, which would be up by a million from 2017/18. Ending stocks are forecast to rise to 2.250 million tonnes by the end of July 2019. That compares with the 1.348 million tonne carryout as of July 2017 and the estimated 2.000 million tonnes for 2017/18.
Losses in the Chicago Board of Trade soybeans and strength in the Canadian dollar contributed to softer tone in canola, according to participants.
However, advances in soyoil provided some spillover support. Persistent South American weather concerns and a lack of significant farmer selling in Canada were also supportive.
About 2,200 canola contracts had traded as of 8:56 CST.
