By Phil Franz-Warkentin, Commodity News Service Canada
July 3, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:44 CDT Wednesday, finding some spillover support from the advances in CBOT soybeans and soyoil.
Overnight gains in Malaysian palm oil and European rapeseed futures were also said to be underpinning the canola market.
Tight old crop supplies and uncertainty over new crop production provided further support. While forecasts generally look favourable for crop development across most of western Canada, there are still enough areas of concern to keep some weather premiums in the futures.
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Speculative buying was also somewhat supportive, with prices holding above the lower edge of their long-term trading range, said traders.
However, activity was on the choppy side and traders cautioned that the market could easily turn mixed as participants move to the sidelines ahead of the US Independence Day holiday.
US markets will close early on Wednesday and remain closed for the July Fourth holiday. Canadian markets will stay open.
The Canadian dollar was seeing a modest recovery from recent weakness on Wednesday, but was still at its lowest level relative to its US counterpart in nearly two years.
At 10:44 CDT, about 5,000 canola contracts had changed hands.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:44 CDT:
