Tightening stocks underpin ICE canola Friday morning

By Phil Franz-Warkentin, MarketsFarm

WINNIPEG, Feb. 5 (MarketsFarm) – The ICE Futures canola market was stronger Friday morning, finding some support from the latest stocks data from Statistics Canada.
Canola supplies in the country as of Dec. 31 came in at 12.1 million tonnes, according to the government agency. That was down by 23.7 per cent on the year and well below the five-year average of 14.4 million tonnes.
The stocks were only slightly below average trade estimates, but were seen as confirming the need to ration demand going forward – especially as exports continue to run well ahead of the year-ago pace.

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Canada has exported 6.2 million tonnes of canola through the first half of the 2020/21 marketing year, according to the latest report from the Canadian Grain Commission. That’s up by 1.6 million tonnes from the same time the previous year.
Gains in Chicago Board of Trade soybeans were also supportive, although soyoil was weaker in early trade.
About 5,500 canola contracts had traded as of 8:39 CST.

Prices in Canadian dollars per metric ton at 8:39 CST:

Price Change
Canola Mar 696.00 up 0.50
May 678.30 up 2.70
Jul 661.00 up 3.60
Nov 565.40 up 4.30