By Phil Franz-Warkentin, Commodity News Service Canada
March 13, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:55 CDT Thursday, hitting their highest levels in three months as fund short-covering provided support.
In addition to the short-covering, some outright speculative buying was thought to be underpinning the Canadian futures as well, according to participants.
Ideas that the logistics issues slowing grain movement across the Prairies were starting to show some improvement were also supportive.
“The spec players are giving the growers a phenomenal selling opportunity,” said a broker on the run-up in canola prices, “hopefully they’ll take it.”
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Many growers will be looking to make some sales for cash flow needs ahead of spring planting, which should limit the upside potential in canola. However, the broker said the farmer selling was not very aggressive on Thursday.
A stronger tone in the Canadian dollar and declines in CBOT soyoil served to slow the upward move in canola.
About 9,000 canola contracts had traded as of 10:55 CDT.
Milling wheat, durum, and barley futures were untraded after seeing some price revisions following Wednesday’s close.
Prices in Canadian dollars per metric ton at 10:55 CDT:
