By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 29, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were mostly higher at 10:48 CST Tuesday, seeing some follow-through speculative buying on Monday’s gains.
The charts remain pointed firmly higher for canola, according to a broker. Although, he noted that the March contract was testing upside resistance around C$621.
Fund traders and domestic crushers were both on the buy side, with gains in the CBOT soy complex contributed to the firmer tone in canola, said the broker.
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A report from Agriculture and Agri-Food Canada forecasting a slight decline in Canadian canola acreage in 2013 was also somewhat supportive for prices, according to the broker. However, a return to trend-line yields would see production and ending stocks rise on the year. The new crop canola contracts were mostly lower on the day.
Scale-up farmer selling did put some pressure on canola, limiting the advances in the front months, according to participants. The firmer tone in the Canadian dollar was also bearish for canola values.
At 10:48 CST, about 10,000 canola contracts had changed hands, with intermonth spreading only a minor feature.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:48 CST:
