By Phil Franz-Warkentin, Commodity News Service Canada
September 25, 2013
Winnipeg – ICE Canada canola contracts were stronger Wednesday morning, as the market continued to consolidate above the nearby lows hit last week.
Malaysian palm oil, European rapeseed, and CBOT soybeans were all steady to firmer in overnight activity, providing some spillover support for canola.
Uncertainty over the size of the US soybean crop and the need to keep a bit of a weather premium in canola while some of the crop is still un-harvested helped underpin canola as well, said participants. The softer tone in the Canadian dollar provided support as well.
However, the record large canola crop is making its way into the commercial system, limiting the upside potential in the futures. Farmers were said to be selling on any bounces.
A slight decline in CBOT soyoil also served to limit the gains in canola.
About 3,000 canola contracts had traded as of 8:47 CDT.
Milling wheat, durum, and barley futures were all untraded after seeing some price revisions following Tuesday’s close.
Prices in Canadian dollars per metric ton at 8:47 CDT:
