By Phil Franz-Warkentin, Commodity News Service Canada
March 12, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:40 CDT Wednesday, recovering from earlier declines as speculative short-covering provided some support.
Declines in the CBOT soy complex initially spilled over to take the canola market lower on Wednesday, but canola managed to move above unchanged as the US market moved off its lows.
Speculators were still holding a net short position of at least 10,000 contracts to start the session, and were buying back some of those positions and booking profits, according to a broker accounting for some of the strength in the market.
A lack of significant farmer selling, the weaker Canadian dollar, and ideas that the persistent logistics issues across Western Canada were starting to show some improvement provided further support, said the broker.
About 10,000 canola contracts had traded as of 10:40 CDT.
Milling wheat, durum, and barley futures were untraded after seeing some price revisions following Tuesday’s close.
Prices in Canadian dollars per metric ton at 10:40 CDT:
