By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 16, 2013
Winnipeg – ICE Canada canola futures were stronger Wednesday morning, taking back most of Tuesday’s declines as the market found some spillover support from the firmer tone in the CBOT soy complex.
Overnight gains in Malaysian palm oil and European rapeseed futures were also helping underpin the Canadian futures, according to participants.
Tightening canola supplies in western Canada coupled with solid demand from end users remained supportive for canola as well. However, while domestic crushers continue to offer good basis levels, there was some talk that exporters were starting to back away at current prices.
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Traders also continue to follow the weather conditions in South America closely. Recent dryness in Argentina has provided some support for the oilseeds, but market participants are still expecting very large soybean production from the continent overall.
From a technical standpoint, canola was running into the upper edge of its recent trading range Wednesday morning, and participants were uncertain if it would be able to break higher given the lack of fresh market moving news.
About 1,700 canola contracts had traded as of 8:44 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged Wednesday morning.
Prices in Canadian dollars per metric ton at 8:44 CST:
