By Dave Sims, Commodity News Service Canada
WINNIPEG, December 30 – Canola contracts on the ICE Futures Canada platform were higher on technical buying at 10:40 CST Tuesday, as investors attempted to square their positions ahead of the New Year.
“The longs seem to be scrambling a little bit to get out of the positions,” said a trader, who felt speculative buying could also be influencing the direction of the March contract.
“Chart-wise we’ve pushed above the C$440.00 (per-tonne) level. (This) could be enticing some of these specs to come in on the long side and maybe start building a bit of a long,” he said.
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US Soybeans were higher which was supportive, said a participant.
Spillover buying in Malaysian palm oil lent support to values.
Commercial demand was steady which helped underpin the market. Some traders were also looking to get out of their January contract, which was a feature.
However, improved prospects for development of the soybean crop in South America, along with the large US soybean crop, were bearish for canola values.
Soyoil was also lower which pressured canola values.
Around 5,500 contracts had traded as of 10:40 CST, Tuesday.
Milling wheat, durum and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:40 CST:
