By Phil Franz-Warkentin, Commodity News Service Canada
April 2, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were posting solid gains at 10:30 CDT Tuesday, seeing some independent strength relative to the softer CBOT soy market.
Losses in CBOT soyoil and a mixed tone in soybeans did put some downward pressure on canola, according to a broker. However, canola was outperforming its US counterpart, with crushers and/or speculators likely playing the spread between the two markets by buying canola and selling soyoil. Supportive technical signals contributed to the buying interest in canola, said participants.
A lack of farmer selling provided further support for canola, with producers said to be a little “shell-shocked” following the recent downturn in the futures markets.
The firmer Canadian dollar did temper the upside potential in canola, according to a broker.
At 10:30 CDT, about 5,700 canola contracts had changed hands, with intermonth spreading only a small feature.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:30 CDT:
