By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 9 (MarketsFarm) – The ICE Futures canola market was stronger on Friday, hitting fresh contract highs in the nearby May contract as concerns over tightening supplies remained supportive.
Chart-based speculative buying was a feature, as investors adjusted positions ahead of the weekend. Drought conditions across much of Western Canada were also underpinning the futures ahead of spring seeding, although forecasts calling for some moisture in the eastern Prairies over the next week eased those concerns somewhat.
Chicago Board of Trade soyoil futures were stronger, providing some spillover support for canola. However, soybeans were posting small losses ahead of the monthly supply/demand report from the United States Department of Agriculture.
The World Agriculture Supply and Demand Estimates (WASDE) will be released at 11:00 CDT and any surprises in the data will likely dictate the direction in the grains and oilseeds in the final hours of trade.
About 9,900 canola contracts traded as of 10:26 CDT.
Prices in Canadian dollars per metric tonne at 10:26 CDT:
Canola May 820.90 up 7.50
Jul 753.10 up 4.70
Nov 632.10 up 4.60
Jan 633.00 up 4.40