By Phil Franz-Warkentin, Commodity News Service Canada
January 7, 2015
Winnipeg – ICE Canada canola contracts were stronger Wednesday morning, with chart-based speculative buying a feature as prices tested resistance to the upside.
The March contract was trading back above the C$450 per tonne level in early activity, which was supportive from a technical standpoint.
Gains in CBOT soyoil, continued weakness in the Canadian dollar, and solid commercial demand contributed to the early strength in canola, according to participants.
However, light scale-up farmer selling did temper the advances to some extent. Ideas that the gains were looking overdone also put some pressure on values.
The large US soybean supply situation and relatively favourable crop conditions for soybeans in South America also helped limit the gains, said traders.
About 3,500 canola contracts had traded as of 8:42 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged, after seeing some price adjustments following Tuesday’s close.
Prices in Canadian dollars per metric ton at 8:42 CST:
