By Dave Sims, Commodity News Service Canada
WINNIPEG, May 5 – Canola contracts on the ICE Futures Canada platform were higher at 10:33 CDT on Friday, taking strength from sharp advances in soyoil and fund buying.
“The funds began buying yesterday and are buying more today, they’re going long,” said a trader in Winnipeg.
Canola also received a push upwards from today’s Statistics Canada stocks report. The agency pegged domestic canola supplies at 6.567 million tonnes, which was below most analyst’s expectations. There are ideas the country could run out of canola before new supplies are ready.
Gains in US soybeans and Malaysian palm oil were supportive for the market.
However, the Canadian dollar was about a third of a cent higher than its US counterpart, which made canola less attractive to out-of-country buyers.
Improving weather conditions across Western Canada is helping farmers get seeding, which was bearish for prices.
About 19,000 canola contracts had traded as of 10:33 CDT.
Milling wheat, barley and durum were all untraded.
Prices in Canadian dollars per metric ton at 10:33 CDT:
