By Terryn Shiells, Commodity News Service Canada
WINNIPEG, May 2 – Canola contracts on the ICE Futures Canada platform were higher at 10:36 CDT Friday, recovering from Thursday’s sharp losses. Activity was on the quiet side, which helped to exaggerate the advances, analysts said.
Some spillover support from the gains seen in Chicago soyoil futures and continued ideas that canola is undervalued compared to other oilseeds were also bullish.
Slow farmer selling of old crop, as they’re taking advantage of forward pricing options for new crop, also lifted the market, as it made less canola available in the cash pipeline.
Positioning ahead of Monday’s Statistics Canada stocks report was also supportive, though expectations call for very large canola supplies.
Continued expectations that 2013/14 carryout stocks of canola will be very large limited the upside, as did some spillover pressure from the losses seen in soybeans.
As of 10:36 CDT Friday, about 6,650 contracts had traded.
Milling wheat, barley and durum were untraded following price revisions after the close on Thursday.
Prices in Canadian dollars per metric ton at 10:36 CDT:
