By Phil Franz-Warkentin, Commodity News Service Canada
April 3, 2014
Winnipeg – ICE Canada canola contracts were stronger Thursday morning, seeing a bit of a recovery following Wednesday’s late turn lower.
Gains in the CBOT soy complex, European rapeseed, and the outside equity markets provided some underlying support for canola, according to participants.
Canola remains underpriced compared to most other oilseeds. With the logistics issues across Western Canada starting to show some signs of improvement more commercial demand was thought to be coming forward.
However, farmer selling was also reported to be picking up on the other side as producers look to generate some cash flow ahead of spring planting.
Expectations for an increase in Canadian canola seedings this year were also overhanging the market.
About 4,500 canola contracts had traded as of 8:52 CDT.
Milling wheat, durum, and barley futures were all untraded after seeing some price revisions following Wednesday’s close.
Prices in Canadian dollars per metric ton at 8:52 CDT:
