By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 7, 2013
Winnipeg – ICE Canada canola futures were holding onto small gains in most months Thursday morning, as the market continued to test new highs for the latest rally.
Canada’s tightening canola supply situation, weather concerns for soybeans in Argentina, and bullish technical signals were all said to be providing underlying support for the futures, according to participants.
Farmer selling did temper the upside, with speculative profit-taking and commercial demand rationing at the highs also said to be coming forward.
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Expectations that 2013 production will help alleviate the current supply tightness also put pressure on the more deferred positions, according to traders.
A mixed tone in the CBOT soy complex accounted for some of the caution in the canola market as well. The USDA releases its monthly supply/demand estimates on Friday, and positioning ahead of the data was expected to be a feature on both sides of the border.
About 3,200 canola contracts had traded as of 8:48 CST, with inter-month spreading a feature of the activity.
Milling wheat, durum, and barley futures were all untraded and unchanged Thursday morning.
Prices in Canadian dollars per metric ton at 8:48 CST:
