By Phil Franz-Warkentin, Commodity News Service Canada
October 30, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:53 CDT Wednesday, seeing a continuation of Tuesday’s short-covering bounce as a rally in CBOT soyoil helped underpin the Canadian futures.
Much of the strength in the US futures was said to be tied to positioning ahead of Thursday’s USDA export sales report, which will include three weeks worth of data and is expected to confirm large US soybean sales that took place while the country’s government was partially shut down earlier this month.
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Malaysian palm oil and European rapeseed futures were also higher Wednesday, which added to the firmer tone in canola, according to participants.
A general lack of farmer selling was also seen as a supportive influence. While producers grew a record large crop this year, they have mostly met their cash flow needs for the time being and are now moving to the sidelines, said traders.
In addition to Canada’s large crop, the advancing US soybean harvest and expectations for an increase in South American production did temper the advances in canola. Technical resistance was also limiting the gains.
About 16,000 canola contracts had traded as of 10:53 CDT.
Milling wheat, durum, and barley futures were untraded on Wednesday, after wheat saw some adjustments following Tuesday’s close.
Prices in Canadian dollars per metric ton at 10:53 CDT:
