By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 25, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:43 CST Tuesday, as speculative short-covering provided some support.
Fund traders are holding large short positions in canola and were buying back some of those contracts on Tuesday, according to participants.
The fact that canola remains underpriced compared to most other oilseed markets was also supportive.
However, the ongoing logistics issues across Western Canada remain a bearish influence overhanging the futures. Losses in CBOT soyoil weighed on canola prices as well, although soybeans and soymeal were both stronger.
About 18,000 canola contracts had traded as of 10:43 CST, with intermonth spreading a feature.
Milling wheat, durum, and barley futures were untraded after seeing some price revisions following Monday’s close.
Prices in Canadian dollars per metric ton at 10:43 CST:
