By Phil Franz-Warkentin, Commodity News Service Canada
March 5, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:44 CST Tuesday, testing the high end of their recent range as the market took some direction from the gains in CBOT soybeans.
Solid export demand and logistics issues in South America were behind some of the strength in soybeans that spilled into the canola market, according to participants. Canola’s own tight supply situation and the steady demand from end-users provided further support.
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Continued weakness in the Canadian dollar accounted for some of the buying interest as well. The technical bias was also said to be shifting higher in canola, with commodity funds on the buy side.
However, canola did run into some resistance which limited the gains. Strong cash bids in western Canada were encouraging farmer selling, and the resulting hedges kept a lid on the advances, according to a trader.
While there is still a great deal of uncertainty regarding North American soybean and canola production ahead of the 2013 growing season, the general expectations for larger crops did weigh on the new crop months as well, said participants.
At 10:44 CST, about 9,600 canola contracts had changed hands, with intermonth spreading accounting for about half of the activity.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:44 CST:
