By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 30, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were higher at 10:44 CST Wednesday, breaking above nearby chart resistance with speculative buying a feature.
Gains in the CBOT soy complex provided the catalyst for the rally in canola, according to traders. Concerns over drier weather conditions in Argentina were behind some of the strength in the soy complex. Malaysian palm oil was also stronger in overnight activity.
Bullish technical signals contributed to the gains in canola, as the move past C$622 in the March contract triggered some speculative buy-stops, said participants.
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Concerns over tightening canola supplies in western Canada also remained supportive, although expectations for increased production in 2013 did cause the new crop months to lag to the upside.
Scale-up farmer selling put some pressure on canola, limiting the advances, according to participants. Profit-taking at the highs was also said to be slowing the upward move.
At 10:44 CST, about 11,000 canola contracts had changed hands, with intermonth spreading accounting for over half of the trade volumes.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:44 CST:
