By Dave Sims, Commodity News Service Canada
WINNIPEG, August 6 – Canola contracts on the ICE Futures Canada platform were mostly higher at 10:45 CDT Thursday in light-volume activity, as sideways trading kept the near-term contracts near the psychologically-important C$500 per tonne mark.
Producers are hanging onto their supplies right now, which was supportive for the market, according to a trader.
“Line companies aren’t trading because the producer isn’t selling it. You don’t have funds involved, no commercial business. It’s a dull, boring affair, you sit and wait for something to happen,” he said.
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Traders are also positioning themselves in advance of next week’s USDA World Agricultural Supply and Demand Estimates
Report (WASDE) which is due on August 12, according to the trader.
“People are looking for a bearish report or a bullish report to put a fire under the canola,” he added.
Gains in US soyoil and European rapeseed futures were also bullish for canola.
However advances in the Canadian dollar, relative to its US counterpart, made canola less attractive to buyers overseas.
The longer-term technical bias is to the downside, according to a report.
Recent rains have alleviated dryness concerns in many parts of the Western Prairies, encouraging traders to take some of the premium out of the market.
US soybeans weaker which limited the gains.
Around 5,800 contracts had traded as of 10:45 CDT, Thursday.
Milling wheat, barley and durum were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:45 CDT:
