|By Phil Franz-Warkentin, Commodity News Service Canada|
|Nov. 27, 2012|
|Winnipeg – ICE Canada canola futures were stronger Tuesday morning, seeing some follow-through buying interest on yesterday’s firmer close.
Monday’s gains were said to have shifted the nearby technical bias in canola back to the upside, which accounted for some speculative buying interest, according to participants.
The stronger tone in the CBOT soy complex, brought on by weather concerns in South America and solid demand for soyoil internationally, provided spillover support for canola as well.
Concerns over tightening Canadian canola supplies and a lack of farmer selling were also supportive for canola, according to traders.
However, the upside in canola was limited, as ideas that canola is overpriced compared to other oilseeds put some pressure on values.
The Canadian dollar was also stronger in early activity, which cuts into crush margins and makes exports less attractive.
About 700 canola contracts had traded as of 8:40 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged Tuesday morning.
Prices in Canadian dollars per metric ton at 8:40 CST:
Canola Jan 585.80 up 3.40
Mar 582.40 up 0.80
May 582.40 up 0.90
Milling Wheat Dec 297.30 unch
Mar 305.30 unch
Durum Dec 312.00 unch
Mar 316.00 unch
Barley Dec 245.00 unch
Mar 248.00 unch