By Phil Franz-Warkentin, Commodity News Service Canada
September 3, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were posting solid gains at 10:47 CDT Tuesday, as a rally in the CBOT soy complex spilled over to pull canola up as well.
Continued hot and dry weather conditions across the US soybean growing regions provided the catalyst for the gains in Chicago, with canola only lagging slightly to the upside, said a broker. Funds were noted buyers in the canola market.
European rapeseed futures were also higher in overnight trade.
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Farmer selling was said to be slowing down slightly, as Canadian basis levels show some deterioration.
However, mounting expectations for a record large canola crop as the harvest moves forward in western Canada did temper the upside potential. Exporters and domestic crushers are anticipating the large crop and are not chasing the market higher, said a broker.
CBOT soyoil was posting the smallest gains of the soy complex, and the relative softness in that market did put some pressure on canola as well.
At 10:47 CDT, about 13,000 canola contracts had changed hands, with spreading only a minor feature.
Milling wheat, durum, and barley futures were untraded and unchanged after seeing prices adjusted following Friday’s close. Canadian and US markets were closed Monday for Labour Day.
Prices in Canadian dollars per metric ton at 10:47 CDT:
