By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 6, 2014
Winnipeg – ICE Canada canola contracts were stronger Thursday morning, posting large gains as advances in most outside oilseed markets spilled over to provide some support.
CBOT soybeans, Malaysian palm oil and European rapeseed futures were all up in overnight activity. A weaker tone in the Canadian dollar, strong crush margins, and ideas that canola remains underpriced compared to other oilseeds added further support, according to participants.
However, Canada’s record large crop and the ongoing logistics issues across the Prairies did remain a bearish factor, keeping canola rangebound overall.
Expectations for a large South American soybean crop were also serving to temper the upside potential, according to traders.
About 5,000 canola contracts had traded as of 8:47 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged after seeing some price revisions following Wednesday’s close.
Prices in Canadian dollars per metric ton at 8:47 CST:
