By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 14, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were sharply higher at 10:38 CST Monday, as a rally in the CBOT soy complex spilled over to provide support.
The USDA released updated supply/demand tables on Friday, January 11. While there were few surprises as far as the oilseeds were concerned, “Friday’s report stirred things up and we’re seeing short-covering across the board,” said a canola broker.
Weather forecasts pointing to drier conditions in parts of South America were also supportive, although the broker said there were no major problems for the soybean crops in Brazil or Argentina yet.
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In addition to the speculative short-covering, exporters and domestic crushers continue to show good demand for canola as well, according to participants.
On the other side, the rally was encouraging some farmer selling. However, most producers are said to be bullish on the market and are holding out for further gains.
Expectations for large South American crops, despite any nearby weather concerns, also continue to overhang the oilseed markets.
At 10:38 CST, about 5,400 canola contracts had changed hands.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:38 CST:
