By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 26, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 11:11 CST Wednesday, taking some direction from the rally in CBOT soyoil.
Malaysian palm oil and European rapeseed futures were also higher in overnight activity, which contributed to the advances in canola.
A lack of farmer selling and weakness in the Canadian dollar provided some support for canola as well, according to an analyst.
He said follow-through buying on Tuesday’s firmer close, as the nearby technical trend has shifted higher, contributed to the gains. However, the longer term outlook still remains pointed lower, limiting the upside potential.
The ongoing logistics issues across Western Canada remain a bearish influence overhanging the futures as well, although those concerns are mostly priced into the market for the time being.
About 17,000 canola contracts had traded as of 11:11 CST, with intermonth spreading a feature.
Milling wheat, durum, and barley futures were untraded after seeing some price revisions following Tuesday’s close.
Prices in Canadian dollars per metric ton at 11:11 CST:
