By Phil Franz-Warkentin, Commodity News Service Canada
May 14, 2014
Winnipeg – ICE Canada canola contracts were stronger Wednesday morning, seeing some follow-through buying interest after yesterday’s gains.
The old crop July contract moved above the psychological C$500 per tonne level, which encouraged some additional speculative demand, according to participants. Commercial demand was also said to be picking up, as the logistics issues across the Prairies show some improvement and canola remains relatively cheap compared to other oilseeds.
CBOT soyoil was stronger Wednesday morning, providing some spillover support.
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However, the burdensome old crop supply situation did remain a bearish influence overhanging the canola market. Ideas that there is still plenty of time to get this year’s crop in the ground, despite the late start in many areas, also weighed on values and the new crop months lagged to the upside.
About 9,000 canola contracts had traded as of 8:44 CDT, with the July/November spread a feature of the activity.
Milling wheat, durum, and barley futures were all untraded after seeing some price revisions following Tuesday’s close.
Prices in Canadian dollars per metric ton at 8:44 CDT:
