By Phil Franz-Warkentin, Commodity News Service Canada
May 15, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:53 CDT Wednesday, as supportive technical signals and concerns over weather conditions provided support.
The July canola contract settled at the high end of its four-month trading range on Tuesday, and the continued strength in the contract was seen as bullish from a chart standpoint, according to participants. In addition to the resulting speculative buying interest, the front month also continued to find some support from the tight supply situation and steady end user demand.
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Farmers are generally busy with spring seeding across western Canada, limiting the hedge selling in the market. While producers are expected to make some good progress over the next couple of days, forecasts are turning wetter for the weekend. The likelihood of further planting delays and the general uncertainty over new crop production was said to be providing some support for canola as well.
The CBOT soy complex was mixed on Wednesday, although the generally softer tone in soyoil did serve to temper the upside in canola, said participants.
At 10:53 CDT, about 7,000 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 10:53 CDT:
