By Phil Franz-Warkentin, Commodity News Service Canada
November 12, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:52 CST Tuesday, as a rally in the CBOT soy complex provided some underlying support.
Strong global vegetable oil demand was pulling CBOT soyoil higher, which was supportive for canola as well, according to a broker. However, he noted that canola had not risen to the same extent as the product values by midsession, as the Canadian market was a little more cautious.
The January canola contract was trading near the psychological C$500 per tonne level at midsession, but could move as high as C$505 to C$506 before running into more significant chart resistance.
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While farmers remain on the sidelines for the most part, the gains were likely encouraging some farmer pricing, said traders. Canada’s record large canola crop and expectations for a good South American soybean crop were also overhanging the futures.
About 20,000 canola contracts had traded as of 10:52 CST.
Milling wheat, durum, and barley futures were untraded on Tuesday.
Prices in Canadian dollars per metric ton at 10:52 CST:
