By Terryn Shiells, Commodity News Service Canada
August 12, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were stronger Monday morning, following the gains seen in the Chicago soybean complex, analysts said.
But, activity was fairly light as traders were on the sidelines ahead of this morning’s USDA report, due out at 11:00 CDT. The USDA report data will likely dictate the direction of the market for the rest of the day.
Some of the buying seen in canola Monday morning was also linked to concerns about slow crop development in western Canada due to recent cooler weather.
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Spill over support from the gains seen in other oilseed markets, including Malaysian palm oil and European rapeseed futures, added to the bullish tone.
Further support came from the downswing in the value of the Canadian dollar and a strong demand outlook for 2013/14, brokers noted.
However, expectations that canola production could be very large in western Canada this year if the crop avoids fall frosts limited the gains.
The technical bias remains pointed to the downside, which also tempered the advances.
As of 8:41 CDT, about 1,650 canola contracts had traded.
Milling wheat, durum and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:41 CDT:
