By Phil Franz-Warkentin, Commodity News Service Canada
May 7, 2015
Winnipeg – ICE Canada canola contracts were holding onto small gains in quiet trade Thursday morning, as the tightening supply situation and a weaker Canadian dollar provided support.
Canadian canola stocks as of March 31 came in at the low end of trade guesses in a Statistics Canada report released Wednesday, and ideas that some demand may need to be rationed going forward were somewhat supportive, according to participants.
The Canadian dollar, meanwhile, was down by roughly half a cent relative to its US counterpart which underpins crush margins and also makes exports more attractive.
On the other side, a softer tone in the CBOT soy complex served to limit the upside potential in canola.
Relatively favourable North American growing conditions and the large South American soybean crop were also bearish for prices in general.
About 1,200 canola contracts had traded as of 8:55 CDT.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric ton at 8:55 CDT:
