By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, April 24 (CNS Canada) – ICE Futures Canada canola contracts were stronger at midday Monday, outpacing Chicago Board of Trade soybeans to the upside as tightening supplies provided support.
“We’re just flat running out of canola,” said a Winnipeg-based broker, adding that the market is working to ration demand.
Weather issues in Western Canada contributed to the strength in canola, as continued rain and snowfall in many regions causes further harvest delays for the canola still left in the field from last fall and will also lead to seeding delays going forward.
Chart-based buying was a feature, as investors worked to exit short positions, added the broker.
A firmer tone in the Canadian dollar put some pressure on canola, tempering the gains. Large South American soybean crops and expectations for record Canadian canola seedings, despite the latest weather concerns, were also overhanging the market.
About 16,300 canola contracts had traded as of 10:55 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
