By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 1, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:52 CST Friday, continuing their sharp uptrend of the past month as gains in the CBOT soy complex provided some support.
In addition to the bullish technical signals, end users were also said to be showing good demand for canola. Domestic crushers continue to offer very good basis opportunities in an effort to secure some of the ever-tightening canola supplies in western Canada. Exporters were also on the buy side, although no fresh business could be confirmed.
CBOT soybeans moved off their highs, which did temper the upside potential in canola, according to traders. Scale-up farmer selling was also limiting the gains.
A trader cautioned that profit-taking could come forward before the close, especially if the buying interest backs away.
At 10:52 CST, about 14,000 canola contracts had changed hands, with intermonth spreading accounting for the bulk of the volumes.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:52 CST: