By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, August 28 – Canola contracts on the ICE Futures Canada platform were stronger at midday Friday, as gains in CBOT soyoil and soybeans spilled over to provide some support. However, activity was on the thin side in the futures, with many participants taking a ‘wait-and-see’ approach ahead of the weekend.
Weakness in the Canadian dollar and gains in global crude oil markets were also supportive for canola, according to participants.
Harvest delaying rains in parts of Western Canada helped underpin the futures as well, with traders still keeping some weather premiums in the market for the time being.
However, farmer selling is expected to pick up over the next few weeks, which limited the upside potential as end users have little incentive to bid up the market, according to participants.
A generally bearish technical outlook was also thought to be keeping a lid on the upside.
About 14,000 canola contracts had traded as of 10:56 CDT.
Milling wheat, durum, and barley were all untraded.
Prices in Canadian dollars per metric ton at 10:56 CDT:
