By Phil Franz-Warkentin, Commodity News Service Canada
September 12, 2013
Winnipeg – ICE Canada canola contracts were stronger Thursday morning, although activity was on the cautious side as participants await the release of the USDA’s production report later in the day.
Ideas that canola is looking attractively priced compared to other oilseeds led to some modest commercial buying interest in the market, as end users were making purchases ahead of the possible volatility following the USDA report.
CBOT soybeans were posting small losses in overnight activity, while soyoil was higher. Traders are generally anticipating downward revisions to the size of the US crop, but the extent of the yield downgrades remains to be seen.
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The advancing Canadian harvest and mounting expectations for a record large crop limited the upside potential in canola.
Technical resistance was also holding to the upside, with the November contract trading just below the psychological C$500 per tonne level.
About 2,300 canola contracts had traded as of 8:36 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged, after seeing some adjustments following Wednesday’s close.
Prices in Canadian dollars per metric ton at 8:36 CDT:
