By Terryn Shiells, Commodity News Service Canada
August 26, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were sharply higher Monday morning, following along with the rally seen in the Chicago soy complex, analysts said.
Much of the rally in both commodities was linked to concerns about forecasts calling for hot, dry weather in the US this week, which could reduce yield potential for soybeans.
Spillover support from the advances seen in Malaysian palm oil and European rapeseed futures further underpinned canola values.
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The need to keep a weather premium built into prices, due to continued worries about canola being susceptible to early frost damage, was also supportive.
Some technical based buying, which was sparked by the break above resistance at C$520 per tonne (November), added to the bullish tone.
Some crusher and export buying was also encouraged by the downswing in the value of the Canadian dollar, as it made canola less expensive for them.
However, some profit-taking at the highs of the day and expectations that the Canadian canola crop will be very large this year limited the gains.
As of 8:37 CDT, about 8,585 canola contracts had traded.
Barley futures were untraded and unchanged. Milling wheat and durum futures were also untraded and unchanged following some price revisions by the Exchange after the close on Friday.
Prices in Canadian dollars per metric ton at 8:37 CDT:
