By Phil Franz-Warkentin, Commodity News Service Canada
August 19, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:55 CDT Monday, taking most of their direction from the rally in CBOT soybeans.
“Beans are on fire,” said a canola broker, noting that the rally in soybeans was tied to concerns over hot and dry Midwestern weather conditions cutting into the yield potential for the US crop. While the Canadian canola crop is in relatively good shape and most participants are now anticipating a record large crop, “we’re the tail, not the dog,” said the broker on the gains in the futures.
Speculative short covering contributed to the advances in canola, according to participants.
On the other side, the rally was said to be encouraging an increase in hedge selling.
At 10:55 CDT, about 6,000 canola contracts had changed hands, with spreading only a minor feature.
Milling wheat, durum, and barley futures were untraded and unchanged after wheat saw minor price revisions following Friday’s close.
Prices in Canadian dollars per metric ton at 10:55 CDT:
