By Phil Franz-Warkentin, Commodity News Service Canada
May 12, 2015
Winnipeg – Canola contracts on the ICE Futures Canada platform were holding onto small gains at midday Tuesday, although activity was thin and choppy as participants awaited the release of the USDA’s monthly supply/demand report.
The report will be out at 11:00 CDT and will provide the first official production estimates from the government agency for the US and world crops for 2015/16.
A firmer tone in the CBOT soy complex ahead of the report did provide some spillover support for canola, according to participants.
Concerns over possible frost damage to some early seeded canola crops were also supportive.
On the other side, the Canadian dollar was up by two-thirds of a cent relative to its US counterpart which was bearish for canola. The stronger currency cuts into crush margins and makes exports less attractive to international buyers.
About 4,500 canola contracts had traded as of 10:27 CDT.
Milling wheat, durum, and barley were all untraded.
Prices in Canadian dollars per metric ton at 10:27 CDT:
