By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 14 (MarketsFarm) – ICE Futures canola contracts stronger at midday Friday, recovering from earlier losses as traders adjusted positions ahead of the weekend.
The gains in canola came despite losses in the Chicago soy complex, as wide crush margins imply that canola remains cheap compared to other oilseeds.
A slowdown in seasonal harvest pressure and a weaker tone in the Canadian dollar provided underlying support for canola as well.
Weekly Canadian canola exports of 208,600 tonnes in the latest Canadian Grain Commission report were down from 308,400 tonnes the previous week, with year-to-date exports of 729,600 tonnes running about 25 per cent behind the year-ago pace. However, analysts expect exports to pick up in the upcoming weeks as available supplies increase. Visible supplies in the commercial pipeline came in at 1.4 million tonnes as of Oct. 9, marking the largest supplies in six months.
About 14,700 canola contracts traded as of 10:54 CDT.
Prices in Canadian dollars per metric tonne at 10:54 CDT:
Canola Nov 872.10 up 1.70
Jan 878.50 up 0.80
Mar 884.40 up 0.10
May 886.20 up 0.30
