By Jade Markus, Commodity News Service Canada
WINNIPEG, January 5 – ICE Canada canola contracts were mixed, but mostly higher, in generally sluggish trade at midday on Thursday.
“It’s a bit of a mixed bag, it’s kind of treading water to see what we’re going to do here,” said one Winnipeg-based analyst.
He added that fund-traders are almost out of their long positions.
“It’s allowing the market to do a whole lot of nothing,” the trader said. “We’re just kind of chopping around, waiting to see where we go.”
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Yesterday’s stronger close is lending support, but a mixed US soy complex is limiting canola’s advances.
Reports of rain in dry soybean growing areas of Brazil pressured values, though investors are keeping a weather premium in the market.
“There’s some pretty good wet areas in Argentina that are going to be reseeded, or may not actually get seeded with soybeans.”
A stronger Canadian dollar added pressure to canola. The loonie has gained ground against its US counterpart over the past two days, which is bearish for canola as it makes the commodity less affordable.
About 8,693 contracts had traded as of 10:45 CST.
Milling wheat, durum and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric tonne at 10:45 CST:
