WINNIPEG, Manitoba--Gains in the Intercontinental Exchange canola futures softened on Thursday from stronger increases earlier in the session.
The prospect of ongoing wet conditions, good domestic and foreign demand and reduced acres at harvest time, provided support to canola.
A trader said it's very likely that harvested acres this fall will be less than 98 per cent of planted acres.
On Tuesday, Statistics Canada pegged canola plantings at a record 23.44 million acres.
The trader said canola is very like to remain rangebound for the time being, unless there is a dramatic shift in the Prairie weather. The latter, he added, will go a long way in determining canola yields.
Additional support came from increases in nearby Chicago soybean contracts while soyoil and soymeal were relatively steady.
Losses in Malaysian palm oil and European rapeseed limited canola's upside. Crude oil was chalking up small gains with spillover going into the vegetable oils.
The November canola contract remained slightly above its 100-day moving average.
The Canadian dollar is higher on Thursday afternoon, with the loonie at 70.52 U.S. cents, compared to Tuesday's close of 70.37.
There were 50,629 canola contracts traded on Thursday, compared to 54,737 on Tuesday. Spreading accounted for 17,048 contracts traded.
Prices are in Canadian dollars per metric tonne: Price Change
Price Change Nov 736.50 up 1.20 Jan 745.40 up 1.50 Mar 751.80 up 1.60 May 754.90 up 1.20Spread trade prices are in Canadian dollars and the volume represents the number of spreads:
Months Prices Volume Jul/Nov 8.00 over to 7.50 under 1 Nov/Jan 8.40 under to 9.10 under 5,495 Nov/Mar 14.30 under to 15.40 under 189 Nov/May 17.20 under to 18.40 under 4 Nov/Nov 25.90 over to 21.50 over 11 Jan/Mar 5.80 under to 6.60 under 2,521 Jan/May 9.20 under to 9.50 under 1 Jan/Jul 8.50 under to 8.90 under 2 Mar/May 2.80 under to 3.60 under 222 May/Jul 1.50 over to 0.40 over 59 Jul/Nov 42.00 over to 38.90 over 19Source: Commodity News Service Canada, news@marketsfarm.com