By Terryn Shiells, Commodity News Service Canada
March 20, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were slightly higher at 8:40 CDT Wednesday, underpinned by spillover support from the advances seen in the CBOT soy complex, analysts said.
Strength in other oilseed markets, including Malaysian palm oil and European rapeseed, also spilled over to underpin canola values.
Steady commercial demand amid tightening Canadian canola supplies also kept a firm floor under the canola market, traders noted.
Continued weakness in the value of the Canadian dollar also fuelled some of the gains, as it made canola less expensive to foreign buyers.
However, expectations that Canadian canola production will be larger in 2013/14 and pressure from the advancing soybean harvest in South America limited the advances.
Ideas that canola is overpriced compared to other oilseeds and technical selling tempered the gains as well, participants noted.
As of 8:40 CDT Wednesday, about 1,340 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:40 CDT:
