By Phil Franz-Warkentin, Commodity News Service Canada
May 8, 2013
Winnipeg – ICE Canada canola contracts were mixed Wednesday morning, as values consolidated within a narrow range.
After being pressured lower by speculative selling the past few days, canola managed to finish off its lows on Tuesday and saw some follow-through buying interest overnight Wednesday. The nearby July contract touched key support at C$590 per tonne on Wednesday, and was now said to be consolidating back around the psychological C$600 per tonne point.
Tightening old crop supplies, solid end user demand, and a lack of significant farmer selling helped underpin canola as well, according to participants.
However, improving Canadian weather conditions, which should allow producers across most areas of the Prairie Provinces to make some seeding progress over the next week, did limit the upside potential in canola.
Large South American soybean supplies are also overhanging the oilseed markets, including canola.
About 980 canola contracts had traded as of 8:51 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged Wednesday morning.
Prices in Canadian dollars per metric ton at 8:51 CDT:
