By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 26 (CNS Canada) – ICE Futures Canada canola contracts were weaker at midday Friday in thin and choppy trade as declines in Chicago Board of Trade soybeans spilled over to weigh on values.
A forecast from Agriculture and Agri-Food Canada predicting a one million acre increase in canola area in 2018 compared to 2017 added to the softer tone, with the government agency pegging canola plantings at a record 24.0 million acres.
Ag Canada is also predicting large ending stocks of 2.0 million tonnes for the current crop year and 2.25 million for 2018/19. That would compare with the 1.3 million tonnes carried forward from the 2016/17 crop year.
Gains in CBOT soyoil provided some spillover support for canola, helping temper the declines. Solid end-user demand and a lack of significant farmer selling were also supportive.
About 6,000 canola contracts had traded as of 10:49 CST.
