By Phil Franz-Warkentin, Commodity News Service Canada
May 27, 2015
Winnipeg – ICE Canada canola contracts were posting small gains in the most active months Wednesday morning, seeing some modest follow-through buying interest after Tuesday’s move above nearby chart resistance.
Mounting concerns over dry conditions in parts of Western Canada, continued weakness in the Canadian dollar, and a firmer tone in CBOT soybeans helped underpin the canola market as well, according to participants.
However, soyoil was lower in Chicago which put some spillover pressure on the Canadian market.
Ideas that canola is looking overpriced compared to other oilseeds also served to temper the upside potential, according to participants. The good US crop prospects and large South American soybean production were overhanging the market as well.
About 3,000 canola contracts had traded as of 8:54 CDT.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric ton at 8:54 CDT:
