By Phil Franz-Warkentin, Commodity News Service Canada
July 10, 2013
Winnipeg – ICE Canada canola contracts were stronger Wednesday morning in choppy activity, as values bounced around both sides of unchanged early in the day.
Speculators buying back some of the positions they sold yesterday accounted for some of the strength in canola, according to participants.
CBOT soybeans were mostly higher, and spillover from the gains there contributed to the buying interest in canola. However, traders cautioned that the US market could easily turn choppy on Wednesday, as participants will be squaring positions ahead of Thursday’s USDA supply/demand report.
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Uncertainty over new crop production prospects, with heat stress being reported in some canola growing areas of western Canada, was another supportive price influence, according to traders. However, the developing crops are generally thought to be in good shape overall, which tempered the upside potential.
Steady farmer selling was also coming forward to put some pressure on values.
The Canadian dollar was slightly firmer early in the day, which also served to slow the upward move in canola, said traders.
About 3,200 canola contracts had traded as of 8:43 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged Wednesday morning.
Prices in Canadian dollars per metric ton at 8:43 CDT:
