By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, May 9 (CNS Canada) – ICE Futures Canada canola contracts were stronger at midday Tuesday, as improving crush margins and a lack of farmer selling provided support.
Gains in the Chicago Board of Trade soy complex, along with a weaker tone in the Canadian dollar, helped crush margins strengthen, according to a broker.
Relatively favourable weather conditions across most of Western Canada had most farmers busy in their fields, which was limiting farmer deliveries into the commercial pipeline.
While the forecasts remain favourable in Manitoba over the next week, calls for rain in Alberta added to the firmer tone in the futures as traders keep some weather premiums in the market.
Speculators were also on the buy side, adding to their net long position, said a broker.
The US Department of Agriculture releases its monthly supply/demand report on Wednesday, and positioning ahead of the data accounted for some activity.
About 6,500 canola contracts had traded as of 10:48 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
