By Phil Franz-Warkentin, Commodity News Service Canada
April 21, 2015
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at midday Tuesday, with intermonth spreading a feature as participants continue to roll out of the front month.
Spillover from the losses in CBOT soybeans and bearish technical signals contributed to the softer tone in canola, according to participants.
However, the outright trade was relatively directionless, with spreading accounting for most of the activity in the market, according to a trader.
A lack of significant farmer selling, the need to keep some weather premiums in the futures ahead of spring seeding, and a weaker tone in the Canadian dollar all helped to underpin the futures.
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Statistics Canada releases its first acreage estimates of the year on April 23, and positioning ahead of the report was expected to provide direction over the next few days. However, most industry participants are only anticipating small acreage adjustments compared to the previous year.
About 15,500 canola contracts had traded as of 10:53 CDT.
Milling wheat, durum and barley were all untraded after seeing some price adjustments following Monday’s close.
Prices in Canadian dollars per metric ton at 10:53 CDT:
