By Terryn Shiells, Commodity News Service Canada
April 18, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were stronger at 8:41 CDT Thursday, lifted by spill over support from the advances seen in the Chicago soybean complex, market watchers said.
Gains seen in Malaysian palm oil and European rapeseed overnight spilled over to provide further support for canola values.
Strong end user demand and slow farmer selling also helped canola values move to higher ground, as did concerns about tight old crop supplies.
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Worries that canola production could suffer in 2013/14 because unfavourable weather is delaying planting in western Canada this spring added to the bullish tone.
Weakness in the value of the Canadian dollar also fuelled some of the gains, as it made canola more attractive to foreign buyers.
However, pressure from the advancing South American soybean harvest limited the gains, as did news that Argentina’s crop is seeing good yields.
Canola values are trading close to key technical resistance levels, which could keep a lid on the market, according to analysts.
As of 8:41 CDT, about 6,970 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged Thursday morning.
Prices in Canadian dollars per metric ton at 8:41 CDT:
