By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Oct. 28 (CNS Canada) – Canola contracts on the ICE Futures Canada platform were stronger at midday Friday, hitting fresh four-month highs once again as persistent Canadian production concerns provided support.
A large amount of canola is still in the fields in Alberta and Saskatchewan, with the prospects for salvaging some of the unharvested crop diminishing with each passing day. As a result, industry participants are busy adjusting their supply/demand projections, as Canadian canola will likely need to be rationed going forward.
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Chart-based buying was also supportive, as nearby technical signals remain pointed higher and fund traders continued to add to their long positions, according to participants.
Gains in Chicago Board of Trade soyoil added to the firmer tone in canola.
However, profit-taking at the highs and expectations for a large US soybean crop kept the gains in check. Cash bids in the countryside were also rising to levels that should be encouraging more farmer selling, said traders.
About 22,000 canola contracts had traded as of 10:58 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
