By Phil Franz-Warkentin, Commodity News Service Canada
June 19, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 11:08 CDT Wednesday, recovering from overnight declines. The largest gains were in the new crop months as the July/November spread narrowed in.
Gains in CBOT soybeans provided spillover support for canola, with a lack of farmer selling, routine end user demand, and uncertainty over new crop production also underpinning the futures, according to participants.
Aside from a few problem areas, crop conditions are said to be looking favourable for canola across most of western Canada. While the good crop prospects were tempering the upside potential, old crop supplies are tight and the need to keep some weather premiums in the market through the growing season kept values well supported.
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The large South American soybean crop overhanging the oilseed markets did temper the upside potential in canola, according to traders.
At 11:08 CDT, about 10,000 canola contracts had changed hands, with spreading only a minor feature.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 11:08 CDT:
