ICE Canola Higher In Thin-Volume Trade

By Dave Sims, Commodity News Service Canada

WINNIPEG, April 30 – Canola contracts on the ICE Futures Canada platform were stronger at 10:50 CDT Thursday, as the weaker Canadian dollar pushed futures higher in thin-volume trade.

Malaysian palm oil and US soyoil were both higher which underpinned the market.

A lack of moisture in some parts of the Prairies was bullish, according to an analyst.

He noted thin volumes were a feature as well.

“We have a lack of players, the open interest has gone down 30,000 contracts in 3 weeks. That’s a half a million tonnes of open interest,” he said, adding a mini-squeeze was underway in the May contract as well.

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Slow farmer selling contributed to the gains along with a general lack of exports.

However, losses in Chicago soybeans and soymeal limited the upside.

If chart-support is broken, the selling could build on itself, an analyst said. .

There are ideas that canola is expensive compared to other oilseeds.

Around 5,500 contracts had traded as of 10:45 CDT, Thursday.

Milling wheat, durum and barley were all untraded and unchanged.

Prices in Canadian dollars per metric ton at 10:45 CDT:

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