By Phil Franz-Warkentin, Commodity News Service Canada
May 13, 2014
Winnipeg – ICE Canada canola contracts were stronger Tuesday morning, with the nearby July contract seeing the biggest gains as the old crop/new crop spread moved to an inverse.
July canola was trading at fresh eight month highs in early activity, boosted by solid end user demand as canola remains cheap compared to other oilseeds. With farmers generally turning their attention to spring seeding, end users are being forced to pay up to bring in canola, said traders.
Read Also
Canadian Financial Close: C$ firm Monday
Glacier FarmMedia — The Canadian dollar held firm relative to its United States counterpart on Monday, with positioning ahead of…
Chart-based buying contributed to the gains, with some buy-stops hit on the way up. Gains in CBOT soybeans and soyoil contributed to the strength in canola, according to participants. Concerns over planting delays in parts of Western Canada, due to cool and wet conditions, were also supportive.
On the other side, the burdensome old crop supply situation did remain a bearish influence overhanging the canola market. Ideas that there is still plenty of time to get this year’s crop in the ground, despite the late start in many areas, also weighed on values.
About 10,000 canola contracts had traded as of 8:51 CDT, with the July/November spread a feature of the activity.
Milling wheat, durum, and barley futures were all untraded after seeing some price revisions following Monday’s close.
Prices in Canadian dollars per metric ton at 8:51 CDT:
