By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Dec. 10 (MarketsFarm) – The ICE Futures canola market was stronger at midday Thursday, seeing follow-through buying after Wednesday’s gains as investors adjust positions ahead of the United States Department of Agriculture’s monthly supply/demand report.
The USDA releases updated usage and ending stocks data at 11:00 CST, and expectations for tightening soybean supplies underpinned the Chicago Board of Trade soybean futures in early activity. Any surprises in the data will likely dictate where the futures settle by the close.
Bullish chart signals contributed to the morning gains in canola, as prices neared major technical resistance.
However, strength in the Canadian dollar put some pressure on values. The currency was up by more than half a cent relative to its U.S. counterpart.
About 26,000 canola contracts traded as of 10:22 CST. Intermonth spreading was a feature, as participants continued to roll their positions out of the front month.
Prices in Canadian dollars per metric tonne at 10:22 CST:
Price Change
Canola Jan 592.10 up 4.30
Mar 587.40 up 4.20
May 582.70 up 3.50
Jul 575.40 up 3.60
