By Phil Franz-Warkentin, Commodity News Service Canada
February 26, 2015
Winnipeg – Canola contracts on the ICE Futures Canada platform were mixed at midday Thursday, with losses in the nearby March contract ahead of expiry and a firmer tone in the more active deferred months.
The March/May spread widened to a larger carry on Thursday, with the May contract now over C$7 above the front month after trading at an inverse for the past three months.
After dropping sharply on Wednesday, ideas that the losses were overdone provided some support, according to participants. Gains in CBOT soybeans and soyoil, solid commercial demand, and a weaker tone in the Canadian dollar also helped underpin the canola market.
On the other side, Wednesday’s losses did do some damage from a chart standpoint, said analysts.
The large South American soybean crop overhanging the global oilseed markets was also a bearish influence.
About 18,000 canola contracts had traded as of 10:49 CST.
Milling wheat, durum and barley were all untraded.
Prices in Canadian dollars per metric ton at 10:49 CST:
