By Phil Franz-Warkentin, Commodity News Service Canada
May 16, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:48 CDT Thursday, finding some spillover support from the gains in the CBOT soy complex.
“We’re matching the US market today,” said a Winnipeg-based broker on the strength in canola. Tight old crop supplies, of both canola in Canada and soybeans in the US, were supportive as well.
Technical signals contributed to the advances in the July canola contract, as the nearby contract continued to test the upper limits of its four-month trading range. Speculators trying to get out of short positions were also behind some of the strength.
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Farmers are busy with spring seeding across western Canada, and the lack of producer deliveries was cited as yet another supportive influence. However, while forecasted rains are expected to cause some delays over the weekend, the rapid pace of seeding over the past week was reducing some of the concerns over new crop production, according to participants.
Profit-taking at the highs and a slow-down in end user demand also limited the gains in canola, said traders.
At 10:48 CDT, about 8,200 canola contracts had changed hands, with intermonth spreading only a minor feature.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:48 CDT
