WCE canola futures mainly higher

28 Jun, 2007

Winnipeg Commodity Exchange canola futures were mainly higher on Tuesday following stronger US markets despite a Statistics Canada report that pegged canola area above expectations, traders said. Canola settled $1 per tonne higher to 50 cents lower, with July up 60 cents at $372.60 and November up 60 cents at $393.80.
"The report had no bearing at all," a canola trader said. Statscan said canola plantings were a record 14.586 million acres, above average trade ideas of 14.3 million acres but down slightly from Statscan's March intentions of 14.8 million acres. Saskatchewan said its canola crop was rated 77 percent in good to excellent condition with 64 percent at or ahead of normal development.
"The crop is getting made as we speak," a trader said. Light commercial demand and only light farmer selling continued to support canola, along with firm Chicago Board of Trade soya. July soyabeans were up 2-3/4 US cents per bushel to US $8.07 and July soyabean oil was down 0.10 US cent per lb at 34.98 US cents.
An estimated 1,698 July/November spreads traded from $21.20 to $21.80, 102 November/January from $8.30 to $8.80 and 113 January 2008/November 2008 at $6. Canola volume was an estimated 7,391 contracts, down from a total of 10,494 on Monday.
Barley futures were higher on a lack of selling following the Statscan report, which estimated barley plantings of 10.863 million acres, down from trade estimates of 11.5 million acres. October barley ended $2.50 per tonne higher at $170.50 and December was up $1.70 at $173.
Corn has started to become a more attractive option for feed rations with the recent run-up in barley prices, reining in gains somewhat, a trader said. An estimated 122 October/December spread traded from $2 to $3. Barley volume was an estimated 350 contracts, down from 598 on Monday.

Read Comments