By Terryn Shiells, Commodity News Service Canada
Winnipeg, April 9 – Canola contracts on the ICE Futures Canada platform were stronger Wednesday morning, lifted by follow-through buying on Tuesday’s advances, analysts said.
Speculative buying and continued talk that canola is undervalued compared to other oilseeds added to the bullish tone.
Further spillover support came from the advances seen in Malaysian palm oil, European rapeseed and the Chicago soy complex in early and overnight activity.
However, expectations of large 2013/14 (Aug/Jul) Canadian canola carryout stocks helped to limit the upside, as did talk that Canadian farmers will plant more acres of canola this spring.
As of 8:36 CDT Wednesday, about 3,200 contracts had traded. Positioning ahead of the USDA’s monthly crop report, due out at 11:00 CDT, was a feature of the activity.
Milling wheat, durum and barley futures were untraded following price revisions after the close on Tuesday.
Prices in Canadian dollars per metric ton at 8:36 CDT:
