By Phil Franz-Warkentin, Commodity News Service Canada
April 9, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:52 CDT, seeing some follow-through buying after breaking above nearby resistance on Tuesday.
Speculators adding to long positions were behind much of the activity, as both old and new crop contracts moved to their highest levels in over four months. The May contract was trading above previous resistance, at C$470 per tonne, while new crop November was nearing the psychological C$500 per tonne mark.
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A lack of farmer selling was also underpinning canola, with most producers now only making sales on a scale-up basis, said an analyst.
Gains in the CBOT soy complex provided some spillover support for canola as well, according to traders. The USDA releases its monthly supply/demand report at 11:00 CDT, and any surprises in the data could cause a sharp move in the soy market.
About 18,000 canola contracts had traded as of 10:52 CDT, with intermonth spreading a feature.
Milling wheat, durum, and barley futures were untraded and unchanged after seeing some price revisions following Tuesday’s close.
Prices in Canadian dollars per metric ton at 10:52 CDT:
