By Phil Franz-Warkentin, Commodity News Service Canada
July 9, 2013
Winnipeg – ICE Canada canola contracts were stronger Tuesday morning, seeing a continuation of Monday’s rally as recent activity as shifted the technical bias to the upside.
Strength in CBOT soybeans accounted for much of the spillover buying interest in canola, according to participants. Malaysian palm oil and European rapeseed futures were also higher in overnight activity.
Uncertainty over new crop production prospects, with heat stress being reported in some canola growing areas of western Canada, was another supportive price influence, according to traders. However, the developing crops are generally thought to be in good shape overall, which tempered the upside potential.
Steady farmer selling was also coming forward to put some pressure on values.
The Canadian dollar was slightly firmer early in the day, which also served to slow the upward move in canola, said traders.
About 3,000 canola contracts had traded as of 8:42 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged Tuesday morning.
Prices in Canadian dollars per metric ton at 8:42 CDT:
